The executive shake-up at cannabis producer Canopy Growth (TSX:WEED)continues.
In the latest development, David Klein, the Chief Financial Officer of Constellation Brands Inc. (NYSE: STZ), has been appointed Chair of Canopy Growth’s Board of Directors, effective immediately. Constellation Brands is the largest shareholder of Smiths Falls, Ont.-based Canopy Growth.
"There is no company better positioned to win in the emerging global cannabis market," said Klein in a statement, adding that he looks forward to working with the company's leadership team to position it "for long-term, industry-leading profitable growth."
Klein has served as a director on Canopy Growth's board since 2018 and replaces John Bell, who was serving as interim chair. Bell is expected to remain as a director on the board. Canopy Growth's Chief Executive Officer, Mark Zekulin is staying on in his current role until a suitable replacement is found. He had been co-CEO alongside co-founder Bruce Linton.
Linton was ousted from the chief executive position — as well as board chair — in July after Constellation Brands said it was disappointed in the company's results. Constellation Brands’ latest quarterly results saw a write down in connection with its stake in Canopy Growth.
In the second quarter of its 2020 financial year, Constellation Brands reported a loss per share of $2.77. Excluding Canopy's equity losses, Constellation Brands said it earned $2.91 per share.
