Linton was let go after disappointing earnings results.
On Wednesday, investors were surprised to learn that Bruce Linton had been fired from the Canadian cannabis company he founded. Canopy Growth is the world’s largest publicly traded cannabis company.
Canopy issued a press release stating that Linton had stepped down from his position as co-CEO and board member, effective immediately. Mark Zekulin will act as the sole CEO while the board looks for a replacement.
Details about the leadership change
The cannabis market is expected to become a $75 billion industry and Canopy has emerged as one of the leading companies. The company has landed a number of high-profile celebrity partnerships.
Canopy also scored a $4 billion investment from Constellation Brands, a beer and winemaker. In exchange, Constellation now has a 38% stake in the company and gets to nominate four of the directors on Canopy’s seven-member board of directors.
This change comes after the company delivered a disappointing earnings report last month. Canopy lost more than expected during its fiscal fourth quarter, which cut into Constellation’s earnings as well.
Linton said he saw the writing on the wall when the board gathered for a meeting that he, then the chairman of the board, hadn’t called.
Expect good things from Canopy going forward
Linton was instrumental in helping Canopy establish itself and become the first cannabis company to be listed on the public market. The company is currently listed on the NYSE and the Toronto Stock Exchange.
Canopy is currently embarking on its next growth phases and Linton says the company is in good hands going forward. Its partnership with Constellation should make it easier for the company to begin producing cannabis-infused beverages.
The company is also looking for ways to bring CBD products to the U.S. by 2020. Canopy currently has a market cap of nearly $14 billion and its stock is up nearly 50% year to date.