3 Marijuana Stock CEOs Who Might Lose Their Jobs
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3 Marijuana Stock CEOs Who Might Lose Their Jobs

Pot stock evaluations have actually plummeted, and these CEOs might pay the price for this underperformance.

Sean Williams

For a very long time, cannabis investors could relatively do no wrong. Prior to April 2019, the large bulk of pot stocks had actually rallied by a triple-digit or quadruple-digit portion, with the expectation that ongoing legalizations throughout North America and around the world would move black-market deals into legal channels gradually.

However, this hasn’t shown to be the case Canada has contended with a variety of supply issues, with U.S. cannabis stocks hampered by high tax rates on legal product in a handful of essential markets. The North American pot market has also had a hard time to access to standard types of funding. Include on the coronavirus disease 2019 (COVID-19) pandemic for excellent procedure, and you can see why cannabis stocks have actually been clobbered over the past 14- plus months.

But it’s not just pot stock shareholders that need to be worried about the underperformance of the marijuana industry. A number of marijuana stock CEOs look to be on the hot seat and in danger of losing their jobs if things don’t reverse very soon.

An illuminated exit sign above a doorway.

Image source: Getty Images.

Numerous pot stock CEOs have actually currently stepped down or been revealed the door

If you believe I’m being a bit overdramatic, think again. Constellation Brands( NYSE: STZ) groomed its Chief Financial Officer David Klein for Canopy Growth‘s ( NYSE: CGC) leading task after co-CEOs Bruce Linton and Mark Zekulin were release months apart from each other. Constellation, which holds a 38%stake in Canopy Development, had actually indicated that Canopy’s widening losses were unacceptable and a drain on its operating income declarations. Given that taking control of the lead role at Canopy, Constellation’s previous CFO David Klein has permanently closed 3 million square feet of growing space and managed several rounds of layoffs.

The pressure likewise appeared to get the better of Terry Cubicle, the now-former CEO of Aurora Cannabis( NYSE: ACB) Even though Booth stepped down and retired(i.e., wasn’t fired), the writing appeared to be on the wall that he ‘d be revealed the door if he hadn’t willingly retired.

Even Aphria‘s ( NASDAQ: APHA) longtime CEO Vic Neufeld stepped down in January 2019

A cannabis leaf laid within the outline of Canadian flag's red maple, with joints and a cannabis bud next to the flag.

Image source: Getty Images.

These marijuana stock CEOs may lose their tasks next

If we have actually discovered anything about the cannabis space over the previous year, it’s that the time for promises is over.

HEXO CEO: Sebastien St-Louis

In my view, the likeliest CEO to get the boot is Sebastien St-Louis, who leads Quebec-based HEXO( NYSE: HEXO)

By the 2nd quarter of 2019, HEXO looked to be on track as a significant Canadian player. The business’s flagship Gatineau center was occurring on schedule, and HEXO had actually boosted its production capability through the Newstrike Brands acquisition. Further, the company had actually struck the biggest wholesale arrangement with a single province in 2018– a 200,000 kilo-in-aggregate deal over 5 years with Quebec

Yet, one year later, HEXO has actually made plans to close and sell the Niagara center gotten from Newstrike, and has actually jotted down the vast bulk of that deal. St-Louis has also overseen layoffs to save capital, and has actually idled some of the business’s growing space at Gatineau.

However what may be most damning of all is commentary from St-Louis during a conference call with experts last year that recommended HEXO would need to make 20%market share in Canada to end up being profitable. That’s an outrageous task considered that HEXO is offering its stock to raise capital and stopping a few of its production to reduce expenses.

A person holding a vial of cannabinoid-rich liquid in front of a flowering cannabis plant.

Image source: Getty Images.

Cronos Group CEO: Michael Gorenstein

Another cannabis stock CEO that must consider himself on the hot seat is Cronos Group‘s ( NASDAQ: CRON) Michael Gorenstein.

On the surface, Gorenstein is worthy of a lot of credit for assisting to snatch Cronos an equity financier. In return, Cronos received $1.8 billion, which was ideal given that the company just had a bit more than $20 million in money on hand prior to the deal closing.

Though Cronos did acquire Redwood Holdings for $300 million to include the Lord Jones brand name of cannabidiol (CBD) charm items to its portfolio, the buzz surrounding CBD products in the U.S. has waned in a big method. With the U.S. Fda putting its foot down on CBD as an additive to food and beverages, CBD sales have not been turning heads.

What’s more, Cronos Group’s average production from Peace Naturals resulted in just a bit more than $8 million in very first quarter sales.

A person holding cannabis leaves in front of a globe of the Earth.

Image source: Getty Images.

Tilray CEO: Brendan Kennedy

Finally, Tilray( NASDAQ: TLRY) CEO Brendan Kennedy should consider himself on a brief leash with the financial investment neighborhood. It’s worth noting, though, that Kennedy is also the Executive Chairman of Privateer Holdings, which Tilray acquired last year. Privateer is Tilray’s biggest shareholder, which might make getting rid of Kennedy a bit difficult.

Kennedy seemed steering Tilray towards success in2018 The company had its going public in July 2018 and quickly escalated from its market price of $17 to as much as $300 on an intraday basis in September 2018 Going Into 2019 with more than $500 million in money and a popular medical marijuana brand name, Tilray was anticipated to have little issue providing for financiers.

Then, in March 2019, Kennedy revealed strategies to de-emphasize financial investments in Canada in favor of the United States and Europe.

Without a plainly defined running strategy, and the company also getting blindsided by weak U.S. CBD sales, Kennedy seems the scapegoat for Tilray’s underperformance.


Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Brands. The Motley Fool recommends HEXO. The Motley Fool has a disclosure policy.”> Sean Williams has no position in any of the stocks pointed out. The Motley Fool owns shares of and advises Constellation Brands. The Motley Fool advises HEXO. The Motley Fool has adisclosure policy“>

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