The CFO of Canopy’s largest shareholder is now the company’s leader
With the tough year that most of the publicly traded companies went through this year, some companies are beginning to take huge steps forward in an effort to improve the situation. Canopy Growth is taking the lead on these changes by announcing a new leader of the company, coming from the biggest investor it has. David Klein, who worked as CFO at Constellation Brands, will be taking over the position as of January 2020.
This giant beverage company, which owns the renowned beer Corona, bought last year a 40% stake in Canopy Growth for $4 billion. That same value has been falling to the ground this year with a performance in the market well below expectations. This year alone the stock price is down 20%; however, just by the announcement of the new CEO, it went up 12%. “Canopy Growth sits at the forefront of one of the most exciting new market opportunities in our lifetime,” Klein said in a press release, adding that “no company is better positioned to win in the emerging cannabis market.”
Besides the general struggle from most of the cannabis-related businesses, Canopy Growth is one of those companies still standing strong, even though they are still losing money. Also, they count with the biggest support and endorsement from high profile celebrities, such as Martha Stewart, comedian Seth Rogen, rapper Snoop Dogg and, most recently, Drake. Since Constellation bought part of the shares, it has been working closely to gain more control over the company, resulting in the removal of one of the founders and former co-CEO, Bruce Linton.