Cannabis Briefs for May 3, 2022
May 3, 2022•Recreational cannabis sales in Illinois bounced back in March to make for the second-best month since the market launched. Overall recreational sales were just shy of $131 million for the month, rebounding $17 million from February’s deep lull. This surge mirrors the same period last year when sales leapt nearly $30 million in March 2021, setting a record at the time. State residents spent $90.4 million and visitors added the other $40.6 million. Just over 3 million cannabis items were sold.
•Cannabis retailer MedMen has appointed Edward Record as CEO, effective immediately. Record joined the company’s board last year and has a long history with retail operations. He previously served as CFO of Hudson’s Bay Company, the parent company of Saks Fifth Avenue, and before that was CFO for J.C. Penney. His prior experience includes leadership positions at Stage Stores, Kohl’s, and Belk. He replaces interim CEO Michael Serruya at MedMen, who will continue as chairman of the board. Additionally, MedMen COO Roz Lipsey announced her resignation, effective May 20. MedMen’s retail footprint now encompasses the six states of California, Nevada, Illinois, Arizona, Massachusetts, and Florida.
•Canadian cannabis producer Hexo has appointed a new CEO and CFO. The company named Charlie Bowman acting president and CEO, to become permanent pending a security clearance process by Health Canada. He replaces Scott Cooper, who took the reins from Hexo founder Sebastien St-Louis in October 2021. Bowman was previously Hexo’s acting COO and general manager of Hexo USA. On the CFO front, Julius Ivancsits will replace Curtis Solsvig, again pending clearance by Health Canada. He’s held CFO titles at multiple previous companies including Goba Capital.
•Canopy Growth has announced further efforts to streamline operations and reduce costs. The company is looking to slash its cost of goods sold by reducing cultivation costs through efficiencies and facility improvements, rightsizing indirect costs around its supply chain, reducing general and administrative costs through reducing third-party professional fees, and further streamlining the organization to drive process-related efficiencies. Management expects to generate cost of goods savings of C$30-C$50 million and general and administrative savings of C$70-C$100 million over the next 12-18 months. These changes will entail an unspecified number of layoffs.
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