Aurora Cannabis Inc. co-founder and CEO Terry Booth announced his retirement from the company on Thursday, the latest cannabis company CEO to leave their job amid a volatile time in the industry. According to a Yahoo! Finance report, the company also said it was implementing a “business transformation plan” while BNN Bloomberg reported that Aurora plans to cut its workforce by 10 percent.
Although Aurora didn’t comment on the rumored job cuts, the firm said the recent changes are “consistent with, and evidence of Aurora’s commitment to, achieving positive [Earnings Before Interest, Taxes, Depreciation and Amortization] and cash flow as rapidly as possible, while still maintaining the ability to capitalize on longer-term Canadian and global cannabis market opportunities.”
In a statement, Booth said the timing was right to make the announcement.
“These changes, along with the financial transformation which we are undertaking, should clearly demonstrate to investors that Aurora has the continuity, strategic direction and leadership it needs to transition from its entrepreneurial roots to an established organization well positioned to capitalize on a global growth opportunity.” – Booth, in a statement, via Yahoo! Finance
Executive Chairman Michael Singer will become interim CEO and the company also added two new independent directors – Michael Detlefsen, the current Managing Director of Pomegranate Capital Advisors, and Lance Friedmann, who has worked for Kraft Foods and Mondelēz International, Inc.
Last month Aurora put its Exeter greenhouse facility up for sale amid a stock price plunge.
Booth is at least the third cannabis company CEO to leave their position since January 2018 when Aphria CEO Vic Neufield was removed following a financial scandal. In July, Canopy Growth Corp. co-founder Bruce Linton was ousted from his role as CEO and just last month MedMen Enterprises co-founder Adam Bierman stepped down amid reports that the company was strapped for cash and offering to pay vendors with company stock.
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