The Board of Directors at Zenabis Global (TSX: ZENA) appear to be dissatisfied with the equities performance to date. This morning, the firm announced that current chief executive Andrew Grieve would be replaced immediately by former CEO Kevin Coft, who will act in the role on an interim basis. Zenabis aims to have a permanent replacement in the role by the end of the first quarter of 2020.
The replacement of Grieve, according to the company, is predicated on his contract being set to expire shortly. However, this is a highly questionable statement, given that his performance incentive payment is highly based on the earnings before interest, tax, depreciation and amortization (EBITDA) of Zenabis Global in 2020, with the payout slated to occur between June 2021 and March 2022. No further information related to his employment contract could be found via Sedar.
Grieve will remain on the Board of Directors, from which he will continue to provide advisory services.
Coft, who will be replacing Grieve on an interim basis was the former CEO of Zenabis Global prior to its merger with Bevo Agro. Currently, he serves as the Chief Facilities Officer for Zenabis, and is responsible for the build out of the firms numerous facilities across Canada.
Zenabis has enlisted Korn Ferry to assist the firm in finding a suitable permanent replacement for the role of chief executive officer at the firm. A final decision for Grieve’s replacement is anticipated to be made in the first quarter of 2020.
Zenabis Global last traded at $0.18 on the TSX.
Information for this briefing was found via Sedar and Zenabis Global. 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. The author holds no licenses.
