Co-CEO of biggest publicly traded cannabis company says he was fired
The co-head of Canopy Growth, the biggest publicly traded pot seller, says his job has gone up in smoke.
Bruce Linton, who served as Canopy’s co-chief executive and chairman, said he was fired from the company he co-founded six years ago. Linton’s offered no reason for the axing, but it comes on the heels of a weaker-than-expected earnings report and a rare public rebuke from the company’s biggest shareholder.
“I think stepping down might not be the right phrase,” Linton said Wednesday in an interview with CNBC while quibbling with the language Canopy issued a press release earlier that morning detailing the “leadership transition.”
“I was terminated,” the straight-talking ex-CEO said.
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Shares of Canopy Growth plunged as much as 8 percent in premarket trades but ended the day up 2.45 percent in Wednesday’s shortened trading session.
Linton’s departure was sudden with him telling CNBC that he knew something was up when members of the board he chairs suddenly called a meeting Friday.
“One does have to wonder if I’m the Chairman and I’m not calling the meeting I suspect it’s about the chairman,” he said.
Linton’s canning follows a reprimand over its recent earnings from Canopy’s biggest investor — Corona-brewer Constellation Brands, which holds 36 percent of Canopy’s shares.
Last week, while announcing beer sales soared 7 percent in the latest quarter, Constellation’s CEO said the beer maker was disappointed in Canopy’s fiscal fourth quarter earnings, which included wider-than-expected losses and sagging sales.
“While we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy’s recent reported year-end results,” Constellation CEO Bill Newlands told investors.
Constellation’s latest round of funding in Canopy — totaling $4 billion — was completed in November with the reconfiguration of the board being a closing condition, Linton said.
Former co-CEO Mark Zekulin is now assuming the role of sole CEO while the board seeks a permanent replacement.
Constellation championed the change in leadership Wednesday, saying they “fully support” the decision made by Canopy’s board and the company’s future remains “very bright.”
“Mark has played an integral role in the company’s success since its inception, including managing all aspects of the company’s day-to-day operations,” a Constellation spokesperson said Wednesday.
“While Canopy will never be the same without Bruce, the team and I look forward to continuing to do what we have done for the past 6 years: investing in world class people, infrastructure and brands, and always seeking to lead through credibility and vision,” Zekulin said.
