Multi-state medical marijuana operator Vireo Health International, Inc. (CNSX: VREO; OTCQX: VREOF) today announced a familiar name from the cannabis industry will helm the company’s board going forward.
Following his ouster from the Canopy Growth CEO position at the behest of major investor Constellation Brands, Bruce Linton will now move into the role of executive chairman at Vireo Health.
Linton will work with Vireo’s current Chief Executive Officer Kyle Kingsley to oversee the company’s M&A, capital raising, and overall strategic direction.
In exchange for his work as executive chairman, Linton will be compensated through three tranches of incentive warrants for a total of 15 million shares. That compensation will come in three staggered offerings, including 10 million at the company’s $1.02 share price from close of business yesterday, as well as 2.5 million at $3.81 a share and the remaining 2.5 million at $5.86.
Discussing his reasoning behind joining the Vireo team out of all the cannabis companies currently seeking new board members and senior management, Linton issued this statement today:
Although reporting strong revenue numbers back in September, Vireo also saw a $1.9 million loss and the company stock has been on the same downward trend seen by the rest of the industry since the spring. Vireo’s stock has declined from a high of $4.90 back in early April to a price of $1.30 as of Thursday afternoon.
Senior management changes have become more frequent in recent months as the North American cannabis industry struggles with low revenue, high expansion costs, and price undercuts from non-licensed sources.
TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) for instance recently brought on a new executive chairman last week to oversee operations and directly work alongside the company’s CEO and existing board chair.
In other Vireo news, the company just hosted the grand opening ceremony for a new Green Goods dispensary location in Bethlehem, PA yesterday.