Pot stock to watch HEXO Corp (HEXO Stock Report) announced a change in the company’s C-Suite. The company indicated that Chief Finance Officer Michael Monahan was leaving his position at the company. Stephen Burwash a fellow company executive has taken Monahan’s position. And with this news, you can already see the impact for pot stocks in the market
HEXO Repositions Team Members
The company indicated that the CFO was resigning because of personal matters as he wants to be close to his family. However, he is not leaving the company immediately but will continue offering consultancy advice through the transition period to Burwash’s reign. In a statement, Monahan indicated that his job meant that will be in Canada more than he anticipated. He joined the company at the end of May this year.
Following the announcement, HEXO which is still considered a pot stock to watch dropped almost 6.4%. Analyst Christopher Carey indicated that the departure of a CFO is a concern for the company which leaves investors with a lot of speculation. He revised his rating of HEXO from buy to underperform and cut the price target to C$4.
Carey said that Monahan might have resigned after realizing that the corporate finance organization was not that developed as he expected. This is an indication that there is a lot to professionalizing HEXO than what The Street or Monahan appreciated.
The Burwash Take Over
Burwash has been then the company’s Strategic Finance VP before the advancement to CFO. The company has not named a replacement for Burwash’s vacated position. He is taking the position at a difficult time when the industry is facing challenges considering cannabis stocks have been bleeding lately. However, HEXO has managed to weather the storm compared to its peers. Its stock has jumped almost 20% since the beginning of the year compared to many of its competitors that are drowning.
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