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Canopy Growth CEO Bruce Linton Fired

The news is sparse so far, but apparently Constellation Brands (STZ) was unhappy with the large losses that Canopy Growth (CGC) was generating now 9 months into recreational legalization in Canada. 

Marketwatch had reported last week that Constellation wasn't happy with Canopy Growth:

Constellation said it’s share of Canopy’s losses came to $106 million, or $78.2 million including tax benefits.
While we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy’s recent reported year-end results,” Newlands said in the call. “However, we continue to aggressively support Canopy on a more focused long-term strategy to win markets and form factors that matter, while paving a clear path to profitability.”

The news is massive for the cannabis industry were rampant spending and production expansion has the industry headed for a flood of supply. My previous work highlighted how bad the March quarter results were for Canopy Growth: Canopy Growth: Not Going Well

Avoid this cannabis stock for now. More to come on this developing story. 

Disclosure: No position 

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