Canadian marijuana producer Aphria says CEO to step down

(Adds details on CEO transition, details on results)

Jan 11 (Reuters) - Canadian pot producer Aphria Inc said on Friday Chief Executive Officer Vic Neufield will step down in the coming months, at a time when the company is facing questions about its deals in Latin America and a recent slump in its shares.

The company also said Vice-President Cole Cacciavillani will step down in the coming months, but did not give any indication when the transition will take place.

Aphria's shares tumbled about 30 percent on Dec. 3, following a report by short-seller Hindenburg Research and Quintessential Capital Management saying the company's Latin American deals were "largely worthless". The Hindenburg report said company has diverted more than C$700 million to undisclosed beneficiaries through such deals.

Aphria, which recently received an all-stock hostile bid from U.S. cannabis retailer Green Growth Brands Ltd, said total revenue more than doubled to C$21.7 million ($16.4 million) in the second quarter ended Nov.30.

Net income jumped eightfold to C$54.8 million. The company reported a 92 percent increase in total kilograms equivalent sold, partly helped by the legalisation of recreational marijuana and continued strong sales of medical cannabis.

Canada became the first major economy to legalise recreational marijuana and its burgeoning marijuana industry has attracted major U.S. firms such as Coca-Cola Co and Constellation Brands Inc. ($1 = 1.3201 Canadian dollars) (Reporting by Laharee Chatterjee in Bengaluru Editing by Saumyadeb Chakrabarty)


More Related News

Aurora Cannabis (ACB) Is Firing on All Cylinders
Aurora Cannabis (ACB) Is Firing on All Cylinders

Aurora Cannabis (ACB) has a problem.Valued at $7.1 billion, Aurora sold only $129 million worth of marijuana over the last 12 months. Worse, it didn't make any money selling that weed -- losing more than $160 million instead. Aurora sports a positive trailing gross margin of 67.5% on its product,

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.