Canopy shakes up management after reporting weak marijuana sales

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Struggling Canadian marijuana giant Canopy Growth is shaking up its senior management team only weeks after notifying shareholders it no longer expects to be profitable this year.

Chief Financial Officer Mike Lee and Chief Product Officer Rade Kovacevic will be stepping down from their positions on Dec. 31, the Smiths Falls, Ontario-based company announced Friday.

No reason for their departures was provided.

“These decisions reflect management and the board’s vision for building a best-in-class organization that is well-positioned to deliver long-term growth and shareholder value,” CEO David Klein said in a statement.

“We appreciate Mike and Rade’s contributions to advancing Canopy Growth to our position as a cannabis industry leader.”

The high-ranking departures come just weeks after Canopy’s chief legal officer, Phil Shaer, left the company.

Canopy has experienced significant market-share erosion over the past two years, with the company currently sitting at less than 10% of Canada’s market.

Despite record monthly growth in Canada over the past year, Canopy failed to meaningfully increase its cannabis revenue.

The company’s net cannabis revenue for the quarter ended Sept. 30, 2020, was CA$92.3 million. One year later, sales were only CA$95.3 million.

Canopy said it initiated an external search for both roles.

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In the meantime, the company appointed Judy Hong as interim CFO and Tara Rozalowsky as interim chief product officer.

Hong previously served as Canopy’s vice president of investor relations and competitive intelligence.

Rozalowsky was VP of beverages and edibles.

Canopy shares trade as WEED on the Toronto Stock Exchange and CGC on the Nasdaq exchange.