Canopy Growth Corporation (TSX:WEED, NASDAQ:CGC) has announced the retirement of CEO David Klein at the end of the company's current fiscal year ending March 31, 2025. Since joining the company as CEO in January 2020, Mr. Klein has successfully led the transformation and development of Canopy Growth, establishing a foundation for multi-market cannabis leadership through its transformation to an asset-light model in Canada and across various international markets, including Germany.
This announcement follows the company's first-quarter fiscal year 2025 results, which revealed significant progress in enhancing Canopy Growth's financial foundation. The company realized a 67% increase in gross profit year-over-year, delivering a consolidated gross margin of 35% and driving a broad-based improvement across key financial metrics.
The Board of Directors has expressed continued confidence in the company's strategic direction and leadership team and has initiated a comprehensive CEO selection process to identify a successor with the right mix of skills, experience, and expertise to lead the company in its next chapter of growth.
David Lazzarato, Chairman of the Board at Canopy Growth, expressed gratitude to David Klein for his exceptional leadership and commitment to the company, noting his instrumental role in navigating the company through a major transformation, establishing Canopy USA, and positioning the organization for leadership across global cannabis markets. The Board remains committed to appointing a new CEO who will continue to drive the company's ambitious vision forward, ensuring that Canopy Growth remains at the forefront of cannabis innovation and growth.
Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives. The company is committed to delivering innovative products with a focus on premium and mainstream cannabis brands, including Doja, 7Acres, Tweed, and Deep Space, as well as category-defining vaporizer technology made in Germany by Storz & Bickel. Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA, LLC.
The company has closed acquisitions of approximately 75% of the shares of Jetty and two of three Wana entities that make up Wana Brands, with the full acquisition of Wana expected by the end of summer, subject to regulatory approval. Jetty owns and operates Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, while Wana Brands is a leading North American edibles brand. Canopy USA has also exercised an option to acquire Acreage Holdings, Inc., a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast and Midwest.
Canopy Growth is also leading the industry forward through a commitment to social equity, responsible use, and community reinvestment, pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater well-being and life enhancement. Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $7.06. For the full picture, make sure to review Canopy Growth's 8-K report.
