WeedMD Inc (TSXV: WMD) announced this morning that Keith Merker has stepped down as a director as well as Chief Executive Officer of the firm effectively immediately. The announcement follows the current trend in the cannabis space as founders and early management teams are being replaced in favour of more seasoned executives.
Taking Merker’s place as Chief Executive Officer is that of Angelo Tsebelis, the current President of WeedMD and the former President of Starseed Holdings. Tsebelis came to the firm as a result of the $78 million all stock transaction that saw WeedMD acquire Starseed late last year.
That transaction, which was largely predicated on Starseed’s sales channel through the Laborers’ Inernational Union of North America (LiUNA) Local 138, as well as a $25 million cash injection by that of LiUNA has to date not been received well by the market. At the time of announcement, WeedMD was publicly valued at roughly $106 million, which included two licensed facilities, 27 acres of outdoor production, and a dedicated extraction center. Comparatively, Starseed largely had a large sales channel through LiUNA, and a single facility that it purchased from Canopy Growth located in Bowmanville, with most product that was sold being sourced via wholesale suppliers.
Tsebelis has a track record of close to two decades worth of commercial experience in the pharmaceutical and healthcare industries. Previous work experienced includes that of Shoppers Drug Mart and Loblaw Corporation where he served as director of commercial partnerships. Prior to this, he spent time at GlaxoSmithKline in the sales department. Most recently, he was responsible for strategic commercialization and product development initiatives for WeedMD and Starseed.
WeedMD is perfectly positioned to move into the next phase of growth and I’m honoured to be taking the reins as we steer towards fully monetizing our distribution channels. I’m looking forward to working closely with the integrated team, our partners, patients and stakeholders to accelerate our commercial growth and business development initiatives.
Angelo Tsebelis, CEO of WeedMD
WeedMD last traded at $0.79 on the TSX Venture.
Information for this analysis was found via Sedar, and WeedMD Inc. The author has no securities related to this organization. WeedMD Inc was previously a client of CanaCom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
