One of Canada's largest cannabis companies will get a new boss on January 14, 2020.
Canopy Growth Corp. has announced that Constellation Brands chief financial officer David Klein will replace Mark Zekulin, who's stepping down effective December 20.
Constellation Brands is a Fortune 500 liquor company that made a $5-billion investment in Canopy last year.
“Canopy Growth sits at the forefront of one of the most exciting new market opportunities in our lifetime,” Klein, also a Constellation Brands executive vice president, said in a news release. “Thanks to the efforts of Mark and the entire team at Canopy Growth, no company is better positioned to win in the emerging cannabis market. I look forward to working with the team to build on the foundation that has been laid, to develop brands that strongly resonate with consumers, and to capture the market opportunity before us.
"Together we will drive sustainable, industry-leading growth that benefits employees, shareholders and the communities in which we operate.”
In October, Klein was installed as chairman of Canopy's board of directors. This came after Constellation Brands reported a second-quarter US$484-million equity loss from its Canopy holdings.
The soon-to-depart CEO, Zekulin, was one of the founders of the publicly traded weed company, which has a market capitalization of $9.74 billion.
Today, the stock is up $3.22, or 13 percent, as of this writing, to $27.95.
It's been a dreadful year for investors in Canopy and other Canadian cannabis companies. Canopy's 52-week high is $70.98.