Missed earnings, misdirection put Canadian cannabis executives in hot seat
Some of the founders of today’s large cannabis companies were good at raising money but not good at making money
Wednesday, April 1, 2020
The exodus of cannabis executives in Canada is in full swing after their companies raked up collective net losses exceeding CA$6 billion ($4.4 billion) in 2019, the first calendar year recreational products were allowed to be sold. Most of Canada’s top cannabis producers have replaced their chief executives or chief financial officers after failing to meet customer and investor expectations. Experts say the CEOs spent too much money on greenhouses, were too focused on investors and did not pay enough attention to customers, real markets or quality control. Many simply lacked the professional toolkit necessary to steer a cannabis company and ended up chasing too many opportunities in far-flung areas of the world where actual marijuana markets remain years away.
