Hexo has announced Scott Cooper as the new president and CEO.
"It's my great pleasure to welcome Scott as our new president and CEO,” said Dr. Michael Munzar, chairman of HEXO's Board of Directors. "Without question, HEXO presents one of the most exciting opportunities in the cannabis industry. I look forward to working with the team to build upon the strong foundation already built, particularly through the company's recent acquisitions and to drive growth and profitability through the efficient commercialization of cannabis consumer packaged goods," said Cooper. "I want to thank outgoing CEO Sebastien St-Louis for his tremendous effort in establishing growth and delivering a solid position from which the company can move forward."
A letter from an investor ousted former CEO?
Last week, Hexo announced that CEO and founder Sebastien St-Louis was stepping down from his role in the company. The news came quite unexpectedly; yet, in a behind-the-scene published by Bloomberg, it looks as if St-Louis resigned after a prominent investor sent a letter to the board of directors expressing dissatisfaction with the former CEO's performance.
"The company has not implemented appropriate operational or financial strategies and its performance has lagged peers and market averages. The executive and board compensation has not focused on the right metrics, the right time frames, or the right targets. The company, under your leadership, has not acted in the best interest of its shareholders," the letter published by Bloomberg reads.
After receiving that, the board held a meeting where the majority voted for the resignation of St-Louis. A spokesperson for the company said to Bloomberg that "this was the right time to make this change. The departure of Sebastien marks the next stage of the company's strategic evolution. Given Hexo's recent acquisitions, there is a real opportunity for a new leader to leverage Hexo's market-leading position to drive growth and profitability."