After reporting a US$484-million loss on its investment in Canopy Growth Corporation, a Fortune 500 liquor company has installed its chief financial officer as the Canadian cannabis company's chairman.
David Klein, who's also executive vice president of New York state–based Constellation Brands, moves into the position two months after the Canopy board fired founder and former co-CEO Bruce Linton.
“I’m excited to serve as Canopy Growth’s new chair of the board of directors,” Klein said in a news release. “There is no company better positioned to win in the emerging global cannabis market. I look forward to continuing to work with Canopy Growth’s very talented leadership team to position the company for long-term, industry-leading profitable growth.”
The former interim chair, John Bell, will remain on Canopy's board of directors.
This board shuffle comes a week before Canada is scheduled to legalize cannabis edibles, extracts, and topical products.
Last week, Canopy bought control of the sports-beverage company BioSteel Sports Nutrition.
Constellation Brands became Canopy's largest shareholder after making a $5-billion investment in the company last year.
This summer, Canopy reported a $1.28-million net loss in the first quarter of this fiscal year.
This was despite the Smith Falls, Ontario–based company selling 13 percent more cannabis in that quarter over the previous quarter in the Canadian recreational market.
As of this writing, Canopy shares are down 2.73 percent to $29.62. Its 52-week high was $76.68.
Canopy's market capitalization is $10.3 billion.