Embattled Canadian cannabis producer Hexo is reforming its board of directors after signing an agreement with an activist shareholder displeased with the company’s performance.
The move comes after Hexo investor Adam Arviv publicly called for the ouster of most of the board earlier this month, citing the company’s underperformance.
Arviv’s investment fund, Kaos Capital, owns roughly 3% of Hexo shares, according to a Hexo news release Tuesday.
Hexo’s board chair, John Bell, is stepping down, as are directors Emilio Imbriglio, Adam Miron and Scott Cooper.
New directors Mark Attanasio, Rob Godfrey and Hélène F. Fortin will stand for election at a March shareholders meeting.
An eighth board director will be appointed after that meeting, according to Hexo’s release.
“We’ll work closely with the management team as they continue to fast-track (Hexo’s) path to becoming a cash flow positive business,” Arviv said in a statement.
Stay informed with MJBiz Newsletters
MJBiz’s family of newsletters gives cannabis professionals an edge in this rapidly changing industry.
- MJBizDaily: Business news for cannabis leaders in your inbox each morning
- MJBiz Cultivator: Insights for wholesale cannabis growers & vertically integrated businesses
- MJBizCon Buzz: Behind-the-scenes buzz on everything MJBizCon
- MJBiz Retail + Brand: New products, trends and news for cannabis retailers, distributors and marketers
- Hemp Industry Week: Roundup of news from hemp farming to CBD product manufacturing
- And more!
Hexo slashed jobs earlier this month to save cash as part of a “path forward” plan targeting positive cash flow.
The company is seeking a share consolidation to maintain its listing on the Nasdaq exchange, where its shares have fallen below the minimum bid price.