Canopy Growth’s Bruce Linton Out as Co-CEO: ‘My Turn Is Over’

The resignation might be a sign that not all is well in the wake of the Constellation deal.

2 min read

This story originally appeared on Benzinga

Bruce Linton founded Canopy Growth Corp in 2013 and was the public face of the Canadian cannabis company until his resignation Wednesday.

What Happened

Canopy Growth announced Linton will step down as co-CEO and board member, effective immediately. The company’s other co-CEO, Mark Zekulin, will become sole CEO and will be tasked with finding a new leader to help the company through its next phase of growth.

Rade Kovacevic, Canopy’s head of all Canadian operations and recreational strategy, will become president of Canopy. The board also named John Bell as chair and this will be reviewed at the company’s annual meeting in September.

Why It’s Important

Linton said he agrees with the board’s assessment that “my turn is over.” Zekulin has been Linton’s business partner from the beginning and played an “integral role in Canopy’s success.”

“While change is never easy, I have full confidence in the team at Canopy — from Mark and Rade’s leadership to the full suite of leadership,” said Linton.

Constellation Brands, Inc.’s multi-billion dollar investment in Canopy gave the alcohol maker control of the cannabis company and its board of directors, 420 Investor’s Alan Brochstein told Benzinga. Constellation’s shareholders have been “critical” of the deal and Constellation’s stock hasn’t moved since the initial investment nearly two years ago.

Brochstein said Constellation made an “extremely unusual” move of criticizing Canopy on its earnings conference call in what could be seen as a signal it isn’t happy with Canopy’s management. The partnership with Canopy is unlikely to generate the results Constellation expected, which Brochstein said is “likely a big disappointment” after management reiterated expectations for Canopy to help generate sales of more than $1 billion.

What’s Next

Canopy’s strategy moving forward will remain the same as it has been for the past six years, Zekulin said. The company will continue investing in people, infrastructure and brands to “lead through credibility and vision.”

“I know the company will continue to thrive as the Canopy story continues on for years to come,” said Zekulin.

Canopy Growth’s stock traded lower by 4.4% to $38.30 in Wednesday’s pre-market session. Constellation’s stock was down 1.8% at $195 per share.


more recommended stories

  • Most U.S. Cannabis Cultivators Choose to Compete on Quality Rather Than Cost (Chart)

    Many wholesale growers are focusing on.

  • How to Build a Community Around Your Brand

    July 19, 2019 2 min read.

  • 5 Science-Backed Ways to Boost Your Creativity

    These tips could revolutionize your approach.

  • Use This Green Beret Method to Find Out if Someone Is Trustworthy

    Thinking about a new partnership? Check.

  • 9 Airbnb Rental Tax Deductions You Can Take for Your Vacation Properties

    Maximize your short-term rental tax savings.

  • The Unheard Voices of the Cannabis Social Equity Movement

    It’s fallen to the legal cannabis.

  • How to Make Money in the Freight Brokering Business

    One expert’s insights into taking advantage.

  • Jay-Z Gets Into the Pot Game (60-Second Video)

    Your weekly rundown of the biggest.

  • 3 Female Leaders Share Their Secrets for Starting and Growing a Business

    These lessons are a reminder that.

  • 6 Easy Steps to Making Connections That Make Money and Create Happiness

    Transform your career and make money.

  • This Female Founder Fought to Stay in the Game And She Just Raised $3 Million in Funding from Serena Williams, Mark Cuban and Arlan Hamilton

    July 15, 2019 5 min read.

  • Tips and Tools for Making Progress Toward Important Goals

    Attend this free webinar and learn.

  • How Digital Marketing Changed the 2016 Presidential Race and Will Change 2020’s.

    As an entrepreneur, there are certain.

  • NFL’s Calvin Johnson and Rob Sims Talk Cannabis: It’s ‘A God-Given Gift’

    Two battered former players who never.

  • 3 Ways AI Can Help Businesses Improve Customer Relations

    The power of AI can lead.

  • 4 Essentials for Complying With the New Data Privacy Regulations

    Consumers need reassurance and protection from.

  • Why This Entrepreneur Says to Check Your Ego at the Door

    July 13, 2019 1 min read.

  • CNBC’s Tim Seymour Talks About Cannabis M&A, Private Vs. Public Markets

    Cannabis is good investment, unless you.

  • 3 Areas Where Enterprise-Focused Startups Are Poised to Make an Economic Impact

    How do you improve efficiency by.

  • What Really Causes Depression?

    Here’s what every entrepreneur needs to.

  • The Unexpected Philosophy That Led Me to My Biggest Closed Deals Ever

    Forget the conventional sales wisdom; if.

  • How This Founder Overcame Challenges He Never Saw Coming

    This entrepreneur and Yale dropout hoped.

  • How to Make Promising Opportunities Come to You

    Grow your business and personal passion.

  • Sacrifice Your Way to Your Dream Job in Sports

    This former mailroom worker talks about.

  • Jay-Z Gets Into the Pot Game

    The legendary rapper/entrepreneur got 99 problems.

  • Fitness Professional Jay Dang on Why Confidence Is the Key to Success

    You have to earn it. July.

  • WarnerMedia’s HBO Max Launches in 2020, and It’s Bringing ‘Friends’

    The streaming service will come loaded.

  • 6 Quotes on Business and Life From Billionaire and 2-Time Presidential Candidate Ross Perot

    The philanthropist died on Tuesday at.

  • Work-Life Balance Is Essential for Entrepreneurs

    If your life is out of.

  • How This Entrepreneur Built a Million-Dollar Business by Focusing on These 3 Strategies

    July 8, 2019 3 min read.

  • USA! Americans Spent $400M on Cannabis for Fourth of July

    Legal marijuana is not yet as.

  • What If Renting an Apartment Were as Easy as Booking an Airbnb?

    AI startup Block wants to make.