Why OrganiGram Holdings shares fell on Monday
Shares of a Canadian cannabis company OrganiGram Holdings (NASDAQ: OGI) fell on Monday after the company told investors The CEO has stepped down of this role. As of 11 a.m. EDT, OrganiGram shares were 4.5% below Friday’s closing price.
The company surprised investors today by announcing that CEO Greg Engel will be stepping down immediately and his acting replacement is Chairman of the Board Peter Amirault. Engel will remain as Special Advisor to the Board of Directors for an indefinite transitional period. No reason was given for the change.
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In his new role as Interim Executive Chairman, Amirault will oversee the operations of the company until a permanent CEO is appointed. Senior Director Geoff Machum thanked Engel for his contributions, saying in a statement, “Greg has provided innovative leadership as the company has created new structures around operations and increased the ability to serve the growing market. , while ensuring our successful launch into the adult recreational sector. cannabis space and bring innovative new platforms and leading edibles to market. ”
OrganiGram released its quarterly financial results on April 13 and made no mention of plans for a leadership change. The company said its revenue fell 37% from the period a year earlier and cost of sales nearly doubled. But Engel spoke of longer-term plans and a new platform for growth with the recent acquisition of Edibles and Infusions Corporation.
Investors generally don’t like surprises, and one of this magnitude brings more sellers than buyers into the stock today.
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