Resigned or Fired? Questions Swirl as Linton Steps Down – LPC
Licensed producer Canopy Growth announced this morning that Bruce Linton steps down as co-CEO and will leave the company.
“The board decided today, and I agreed, my turn is over,” Linton said in a company press release.
The founder and very public face of Canopy Growth took the company to one of the biggest cannabis companies in the world. As Linton steps down, Mark Zekulin will move from co-CEO to full CEO during a leadership search.
“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 six years: investing in world class people, infrastructure and brands, and always seeking to lead through credibility and vision,” Zekulin said.
“I personally remain committed to a successful transition over the coming year as we begin a process to identify new leadership that will drive our collective vision forward.”
However, not everyone agrees as Linton steps down that the feeling is mutual. John Zechner, chairman and founder at Toronto wealth management company J. Zechner Associates is one of them, according to Bloomberg.
“This looks like to me it’s got Constellation’s fingerprints all over it,” Zechner said. Constellation Brands Inc. invested $5 billion last August and is reportedly not happy with Canopy’s year-end results. J. Zechner Associates has shorted Canopy Growth stock.
Questions Abound, but Few Answers So Far – LPC
“Nowhere did it seem like this guy was ready to depart the company,” Zechner told Bloomberg.
Indeed, as Linton steps down, it’s hard to understand why he would do so voluntarily. In March, Linton announced a partnership with Seth Rogen’s cannabis brand Houseplant. Linton also announced in March that lifestyle maven Martha Stewart was teaming up with Canopy to develop CBD products.Two weeks ago, he and Stewart sat on a stage together, discussing hemp-derived CBD products.
The reasons why Linton steps down today may not be clear. But Bloomberg’s guess that Constellation is behind the move is as good as any.