Former Canopy Growth (CGC) CEO Bruce Linton on Thursday was named the executive chairman of Vireo Health, a science-focused cannabis outfit with operations in multiple U.S. states, marking the latest move from the executive after his ouster from the weed giant this summer. Canopy Growth stock and other marijuana stocks gave up gains.
Under his new role with Vireo, Linton will “spearhead the company’s strategic decision-making, capital markets activity and future partnerships,” Vireo said in a statement.
In landing Linton, Vireo will be able to tap the knowledge of a high-profile executive who was a trailblazer in the Canadian legal industry’s early expansion. Under Linton’s watch, Canopy struck a $4 billion investment deal from beer-and-wine distributor Constellation Brands(STZ). He also helped orchestrate the cross-border deal to buy cannabis company Acreage Holdings in the U.S.
However, steep losses piled up for Canopy with Linton at the helm as the company planted itself in new markets. Sales began to disappoint investors. Canopy’s board dismissed Linton this summer. Higher-ups from Constellation Brands, which had expressed some of that disappointment, control Canopy’s board.
“We are confident Vireo can become a top U.S. producer and distributor of high-margin, proprietary products within the next several years and create unprecedented long-term shareholder value,” Linton said in a statement on Thursday.
In September, Linton said he would become the executive chairman of Gage Cannabis, a company based in Michigan. He also revealed then that he was an activist investor in Slang, a company that oversees a variety of cannabis brands in stores across 12 U.S. states. [Read More @ Investor’s Business Daily]