Canadian cannabis producer Canopy Growth recently announced significant changes to its board of directors, accompanied by a reduced net loss in the third fiscal quarter and an unwavering commitment to its cannabis-centric strategy. According to a filing with the U.S. Securities and Exchange Commission, Canopy's net loss for the third quarter improved to 216.7 million Canadian dollars ($160 million). Two years ago, Canopy growth had reported a net loss of $2 billion.
The board shake-up is directly linked to the company's advancement of its Canopy USA strategy, as detailed in a press release. Notably, Robert L. Hanson resigned from Canopy's board on Feb. 6, making way for two new board members, Willy Kruh and Luc Mongeau, who assumed their roles on Feb. 7.
Willy Kruh, listed as the current CEO of PlantExt, a pharmaceutical cannabis formulation company on LinkedIn, replaced Hanson. Luc Mongeau, with decades of experience leading consumer packaged goods (CPG) companies like Mars, Mars Petcare, and Weston Foods, also joined the board.
The changes are part of the anticipated departure of Constellation Brands-appointed board members, aligning with the creation of exchangeable shares to support Canopy's U.S. strategy. Canopy plans to file its definitive proxy statement with the SEC on Feb. 13, with a shareholder vote scheduled for April 12.
CEO David Klein emphasized the company's new direction, stating, “This is the dawn of a new era at Canopy Growth,” expressing a singular focus on cannabis and anticipating growth across all business units with the Canopy USA strategy.
In the third quarter, Canopy reported a decline in net revenue to CA$78.5 million, with Canadian cannabis revenue experiencing a significant drop of 16.3% year-over-year. Despite challenges, Canopy remains optimistic about achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) across all business units by the end of fiscal 2024.
The company's CEO addressed international markets during a conference call, emphasizing a cautious approach to capital deployment and prioritizing areas where Canopy operates successfully, such as Germany, Australia, Poland, and the Czech Republic.
Canopy Growth's future outlook hinges on its commitment to a cannabis-centric strategy, the success of the Canopy USA initiative, and the evolution of the regulatory landscape, notably potential reclassification of marijuana from Schedule 1 to Schedule 3 in the Controlled Substances Act. Shares of Canopy Growth trade as WEED on the Toronto Stock Exchange and CGC on the Nasdaq.
This story was first reported by MJBizDaily.