Zenabis Global Inc. (TSX:ZENA) (OTCPK:ZBISF) remains one of Rich’s favorite pitches, even as the growth potential shapes up to be a rather long-term play. While there’s been some mixed news from the company lately, today brings some hope for embattled investors.
The company announced this morning that it has appointed Kevin Coft as interim Chief Executive Officer. Coft, a founding member of Zenabis, replaces Andrew Grieve in the position.
“It’s about time, Zenabis!” says Rich, who has been a vocal critic of Grieve. Rich calls the departing CEO a “lame duck” and welcomes the transition to Coft. Let’s break down the news.
Coft Takes the Helm
Coft brings to the position of CEO more than 30 years of international procurement, facility operations, and managerial experience. His industrial expertise includes regulatory licensing, construction, strategy, operations, logistics, warehousing, customer relationship management, and business systems.
Most recently, Coft held the position of Chief Facilities Officer. During this time, he was responsible for the build-out of Zenabis’s facilities across Canada. That includes one of Canada’s largest indoor cannabis cultivation facilities, located in Atholville, New Brunswick.
Prior to joining Zenabis, Coft held senior roles at IHL Group and Buy-Low Foods.
Interestingly, this isn’t the first time that Kevin Coft has been the company’s interim CEO. He previously took on the role when it was a part of the Sun Pharm group. This was prior to the amalgamation with Bevo Agro that created Zenabis Global Inc.
The last time he was CEO, Coft was instrumental in Zenabis achieving ACMPR compliance as a Canadian cannabis licensed producer.
Zenabis Will Continue Search for Permanent CEO
“This will not be the final CEO,” explains Rich. “They’re going to keep looking for a new CEO, and I hope they find somebody with clout. I hope they find somebody who can build and can do something with the capital markets.”
Monty Sikka, Chairman of the Board of Directors of Zenabis, said of choosing Coft as interim CEO:
“We will take full advantage of his knowledge of the company and industry, as well as his steady leadership as we continue to mature as a business. In this phase of our growth, we look forward to Kevin’s leadership as we continue our search for a permanent, CPG (consumer packaged goods) and operations-focused CEO.”
In the meantime, Zenabis has engaged Korn Ferry to assist with the hiring of a permanent CEO. It expects to have one in place during the first quarter of 2020.
ZENA’s Poor Performance Under Grieve
Grieve took over as CEO on January 21. Back then, ZENA shares were worth $3.68.
Today, as Grieve prepares to step down as CEO, Zenabis stock can be bought for $0.20. That represents a 94% loss in value in less than one year.
“This guy had to go,” says Rich. “The shareholders have been decimated, and he wouldn’t even admit it!”
Discussing his tenure with the company, Grieve said in a statement:
“From just over 5,000 kg of licensed cultivation capacity in January of 2019, to 57,000 kg at this time, with another 39,400 kg submitted for licensing and an incremental 14,800 kg having recently achieved substantial completion, the pace of growth has been exceptional.”
While the path ahead remains rocky for Zenabis, a new leader just might be what the company needs to get its stock price back up. Keep watching RichTV Live for more updates.
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