It’s a bad day for those in the cannabis industry. After Constellation Brands was forced to take a $1.0 billion impairment this morning on its Canopy Growth investment due to terrible performance, Green Thumb Industries (CSE: GTII) is reporting that three directors have resigned. The resignations are reportedly due to a disagreement.
The disagreement is said to pertain to the firms “policies and practices related to personal misconduct.” The disagreement lead to a situation in which the “former directors and existing management could not find a resolution satisfactory to all parties.” As a result, William Gruver, Glen Senk, and Dorri McWhorter have resigned from their roles with the company.
The three departees coincidentally were the newest members of the firms board. Senk had been on the board since 2018, while Gruver had joined in 2019 and McWhorter earlier this year. The three remaining directors, Ben Kovler, Wendy Berger, and Anthony Georgiadis, joined the team in 2014, 2015, and 2017, respectively.
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In commenting on the departures, CEO and founder Ben Kovler commented that, “There are massive opportunities in front of us and we now have a board aligned with management to provide increased shareholder value.” Kovler made no comment on why these policies and practices were not sufficient enough for the departing members.
In terms of recent events that may have caused the disagreements, a former employee on September 22 filed a complaint against the company, accusing the firm of gender and age discrimination. Earlier this year, the company was also hit with a racial discrimination lawsuit. It is unclear however what in particular set off the chain of events that lead to the disagreement and ultimate departures of the board members.
Replacing the departing members is that of Richard Drexler, whom is the former CEO of Quality Products, and Jeff Goldman, whom is classified as a “brand veteran” due to his work with Reed-Union Corporation, which was sold to Energizer Holdings in 2018, as well as his time spent at Carol’s Cookies, a family owned business founded by his mother.
Green Thumb Industries last traded at $13.69 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
