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Canopy Growth names shareholder Constellation's CFO as chairman

Published 10/10/2019, 08:07 AM
© Reuters. A sign featuring Canopy Growth Corporation's logo is pictured at their facility in Smiths Falls
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(Reuters) - Cannabis producer Canopy Growth Corp (TO:WEED) (N:CGC) said on Thursday it appointed top shareholder Constellation Brands Inc's (N:STZ) chief financial officer, David Klein, as chairman of its board.

Klein will take over, effective immediately, from interim chairman John Bell, who will continue as a director on the board.

In July, Canopy fired its co-founder, co-Chief Executive Officer and Chairman Bruce Linton after Constellation expressed disappointment over the company's financial performance.

Bell was appointed as the interim chairman after Linton's ouster.

Klein has served as a director on Canopy Growth's board since 2018.

Constellation Brands has invested over $4 billion in Canopy, making it one of the first major alcohol producers looking to cash in on the proposed legalization of recreational weed in several countries.

© Reuters. A sign featuring Canopy Growth Corporation's logo is pictured at their facility in Smiths Falls

However, the pot producer had warned in August that it would need another three to five years to turn profitable.

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