Cronos Group (TSX: CRON) (NASDAQ: CRON) today quietly filed a Form 8-K identifying that two members of management have resigned from their positions with the company effective December 31, 2019. It is unclear whether the resignation was forced or not at this time.
The first executive to see his walking papers is that of Chief Operating Officer David Hsu. Hsu had been with the firm since September 2016 as per his LinkedIn profile, which still acknowledges that hes at Cronos. In exchange for the resignation, Hsu was paid a severance of C$400,000, which also includes subsidized life insurance, medical and dental benefits until the earlier of June 30, 2020 and the day on which he obtains alternative insurance and benefits coverage.
The second executive to depart the firm is that of William Hilson, who was formerly the Chief Commercial Officer at the firm. Hilson was the founding Chief Financial Officer of the company, and had transitioned to the role of Chief Commercial Officer last April. His severance package consists of a cash payment of C$167,500, as well as the same terms for insurance, medical and dental benefits.
Outstanding unvested options held by the two former directors will vet on an accelerated basis as of December 31, 2019. Any vested options are required to be exercised by the earlier of the exercise date and that of June 30, 2020. Hsu is believed to have held 1,776,616 common share purchase options, whereas Hilson last reportedly owned 525,664.
It is unclear at this time whom will be replacing the two executives, or the ultimate reason for their departure.
Cronos Group last traded at $8.34 on the Nasdaq.
Information for this analysis was found via Sedar and Cronos Group. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
