Cannabis CEO job security getting more precarious

The cannabis industry’s management exodus is gaining steam.

Since the beginning of January, at least five pot companies have announced the departures of their chief executive officers or a substantial chunk of their senior executive team. The exits have affected both Canadian and U.S. operators.

It’s not surprising to see executive turnover in a struggling industry, of course. The average 2019 stock decline of the five companies listed above was 63 per cent, similar to the sector as a whole, and many of them are facing a cash crunch amid mounting quarterly losses and wary capital markets.

However, the management upheaval seems to only be exacerbating investor concerns. Since their announcements were made, Supreme’s stock is down about 23 per cent, Flowr has lost 7.6 per cent and Sundial has tumbled a whopping 53 per cent. As CIBC analyst John Zamparo said of Sundial’s departures: “Such transitions rarely predict positive near-term performance.”

There will likely be more executive departures as the turmoil in the cannabis industry continues.

Read more at bnnbloomberg.ca


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