Canopy Growth Corporation, a major player in the cannabis industry, announced on Friday that CEO David Klein will step down after the company’s fiscal year ends on March 31, 2025. Klein has agreed to remain in his current role and on the company’s board of directors until a new CEO is appointed. Canopy’s board is actively searching for a suitable replacement and has engaged a search firm to assist in the selection process.
Klein joined Canopy in January 2020 and oversaw significant changes, leading the Ontario-based company through a transformation to capitalize on opportunities in the global cannabis market. Under his leadership, Canopy transitioned to an asset-light model in Canada, expanding its presence across international markets, including Germany. Additionally, Klein spearheaded the launch of Canopy USA, a unique structure designed to provide shareholders with exposure to the rapidly growing U.S. cannabis market, even before federal legalization.
Canopy’s recent financial results demonstrate its strong performance. The company reported record revenue for Canadian medical marijuana in its last quarter, with new revenue rising 20% year-over-year, marking the sixth consecutive quarter of growth. Gross profit also increased significantly, reaching CA$23 million, representing a 67% surge compared to the first quarter of 2023. Despite a decline in consolidated net revenue, Canopy remains focused on generating profitable revenue, positioning itself for future growth.
“The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025,” Klein stated earlier this month. “With our core businesses delivering adjusted EBITDA profitability and primed for growth, paired with Canopy USA’s positioning to benefit from near-term market opportunities in the U.S., Canopy Growth is advancing rapidly and is well established for multi-market cannabis leadership.”
Canopy’s shares traded slightly lower at $6.97 per share during pre-market trading on Friday. As the company moves forward with choosing a new CEO, investors and industry observers will be closely watching to see who takes the helm and how Canopy continues to navigate the evolving cannabis landscape.
