On Thursday (January 30), Sundial Growers (NASDAQ:SNDL) saw a massive plunge of nearly 40 percent after revealing the resignations of its CEO and chief operating officer (COO).

The Alberta-based cannabis producer told investors that effective immediately, former CEO Torsten Kuenzlen will be resigning to “pursue other interests,” leaving board member Zach George to take over.

Former COO Brian Harriman will be succeeded by Andrew Stordeur, adding to Stordeur’s current role as president of the company’s Canadian operations.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

The company opened at US$1.98 on Thursday, down from its previous close of US$2.58. As of 3:23 p.m. EST that day, the value of the cannabis producer had dropped 39.53 percent.

Sundial completed a showy initial public offering (IPO) in August 2019. Since then, shares of the company have continued to fall as the overall cannabis market faces a difficult period in the capital markets.

As a response to the slow rollout of cannabis stores in Canada — a concern shared by several other players in the Canadian cannabis space — Sundial has now launched a cost-optimization initiative meant to ensure its continued growth and reassure investors.

According to Sundial, the changes include workflow and process enhancements, realignment of product lines and “workforce optimization” to better manage costs.

With the changes, Sundial expects to save from C$10 million to C$15 million in the 2020 fiscal year.

“While industry delays adversely impact Sundial’s operations in the short term, the company expects to see a resumption of strong growth across the industry when the regulatory bottlenecks are removed and approvals for new products are granted,” the company said in Thursday’s press release.

Sundial has already put some of its cost-cutting measures in place and expects to see the fruits of its efforts in Q1, but said it will continue to monitor its operations in the current cannabis landscape.

When asked if the streamlining initiatives would represent any potential layoffs, a Sundial spokesperson told the Investing News Network: “We are positioning the company for future sustainability and long-term growth. We will continue to monitor industry dynamics and take steps necessary to ensure the ongoing success of the company.”

Kuenzlen’s departure is the most recent in a rash of executive losses at several cannabis companies.

On Tuesday (January 28), TerrAscend (CSE:TER,OTCQX:TRSSF) switched out its former CEO and co-founder, Michael Nashat, for Jason Ackerman, who is now in the leadership role in the interim.

“While it was a difficult decision, I believe given TerrAscend’s premier operating assets in the United States, it is now time for me to step into an advisory role and let new US-based management guide TerrAscend as they expand and scale,” Nashat said in a press release.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

Earlier this month, The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) let go of its now former CEO Navdeep Dhaliwal and made Colin Moore, a director at Supreme and former president of the Canadian branch of Starbucks (NASDAQ:SBUX), its new interim executive leader.

The news caused CIBC Capital Markets research analyst John Zamparo to lower his price target for Supreme to C$0.65 from C$1.25.

Departures follow legal troubles for Sundial

Sundial’s recent leadership transition follows a rocky summer for the firm.

Shortly after the company announced its IPO, it was hit with a class-action lawsuit that claimed Zenabis Global (TSX:ZENA) returned 554 kilograms worth C$2.25 million of cannabis to Sundial; it was allegedly contaminated with mold and pieces of rubber gloves, according to a report from MarketWatch.

Sundial responded by saying that in reality a “fraction” of the amount listed in the lawsuit was returned and the return represented a small percentage of the company’s total production capacity at the time.

Kuenzlen said the claims were baseless and the company was set on fighting the lawsuit.

In an interview with BNN Bloomberg in October, Kuenzlen further addressed the legal action.

“If you look at some of the articles involved, it does appear that there was more than one producer involved (when) the customer returned some product,” he said at the time. “We certainly did not get half a ton of pot returned to us.”

Kuenzlen didn’t specify exactly how much product was returned to the company, but did say it was significantly less than half the amount that was reported.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.


Cannabis - Will The Fortune 500 Join The Party?

Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!

A middling Canadian cannabis producer announced an executive turnover plan this week after receiving a critical investor letter in September.

Meanwhile, a Canadian exchange-traded fund (ETF) company released lists of new additions to both of its cannabis funds as part of its quarterly rebalancing.

Keep reading... Show less
  • The Cannabis Derivatives are derived from Avicanna’s cultivation and extraction infrastructure in Santa Marta, Colombia designed to supply partner companies and the manufacture of Avicanna’s own finished products.

Avicanna Inc. (” Avicanna ” or the ” Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announce that, through its majority owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S. (“ SMGH ”), it has completed a commercial exports of CBD Isolate and CBD full spectrum psychoactive cannabis resin (the “ Cannabis Derivatives ”) to a leading Chilean homeopathic and naturopathic pharmaceutical company.

The Cannabis Derivatives, branded as Aureus™, are cultivated, extracted, and manufactured by SMGH. In addition, for Avicanna’s global input needs, SMGH also supplies other pharmaceutical and cosmetics companies with cannabinoids including CBD, THC, and rare cannabinoids such as CBG in addition to supplying global cultivation companies with standardized and feminized seeds. This new export to Chile is a recurring order and part of on-going relationship with an established homeopathic Chilean company.

Keep reading... Show less

Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED, NASDAQ:CGC) will release its financial results for the second quarter fiscal year 2022 ended September 30, 2021 before financial markets open on November 5, 2021 .

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced today the opening of a new Sunnyside dispensary in Wyomissing, Pennsylvania. Wyomissing will be Cresco Labs’ fifth dispensary in Pennsylvania and 38 th nationwide.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211021006075/en/

Keep reading... Show less

The world of cannabis consumption is set to change radically, thanks in large part to the advancement of state-of-the-art research on the plant itself.

Medical cannabis products have already allowed many new users to discover the plant’s potential, but decisive research will help build a foundation for more sophisticated medical offerings.

Keep reading... Show less