Constellation Brands (NYSE:STZ)
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6 Months : From Oct 2019 to Apr 2020
By Colin Kellaher
Canopy Growth Corp. said David Klein, who currently serves as chief financial officer of major shareholder Constellation Brands Inc., will join the cannabis company as chief executive, effective Jan. 14.
Canopy said Mark Zekulin will step down as CEO and resign from the board, effective Dec. 20.
Mr. Zekulin, a company founder who stepped in as CEO in July when the Smith Falls, Ontario, company ousted Bruce Linton, had previously announced plans to leave when a new CEO was identified.
Mr. Klein has served as chairman of Canopy since October. The company said it plans to name a new chairman when Mr. Klein takes over as CEO.
Constellation Brands -- which produces and markets drinks such as Corona beer, Meiomi wines and Casa Noble tequila -- holds a roughly 36% stake in Canopy. The Victor, N.Y., company last year had invested about $4 billion into the Canadian company.
In October, Constellation said its investment in Canopy had lost about $1.3 billion of value in the quarter ended Aug. 31.
"Canopy's business is rapidly evolving, and the financial results will likely be volatile," Mr. Klein said in October. Earlier this year, Constellation Brands CEO Bill Newlands said he wasn't pleased with the marijuana grower's results.
Canopy's stock price, through Friday, had fallen more than 63% in Toronto trading since its high in April, reflecting in part investor disenchantment with the cannabis sector after sales in Canada got off to a slower start than expected following the country's legalization of recreational use.
On Monday, Canopy share rose 13% to C$27.92. Constellation Brands fell 1.4% to $181.10.
Constellation Brands named Garth Hankinson executive vice president and chief financial officer, effective Jan. 13. Mr. Hankinson, who joined Constellation in 2001, serves as senior vice president of corporate development.
Canopy, which was started in 2013, sells medical marijuana products -- including dried flower, oils and capsules -- in Canada, Germany and the Czech Republic, as well as recreational products in Canada.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
December 09, 2019 15:04 ET (20:04 GMT)
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