Cronos stock is trading marginally higher this morning despite Cronos Group (TSX:CRON) (NASDAQ:CRON) announcing that two members of the company's management have resigned from their positions.
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Cronos Group is one of the biggest cannabis companies in the world, and despite the difficulties it went through in 2019 due to sector-wide issues, the company is determined to come back strongly this year. However, Cronos got a bit of a setback on Wednesday after it emerged that two of its key executives have decided to walk away from the company.
In a regulatory filing made by Cronos, it has been revealed that William Hilson, the Chief Commercial Officer, and David Hsu, the Chief Operating Officer, have both resigned from their positions. The company did not reveal the reasons behind the pair of resignations.
Nor did Cronos Group reveal the names of the replacements or whether the company is actively looking to fill those positions. According to reports, both resignations came into effect on December 31 last year.
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Cronos stock is up by 0.50% at $8.38, despite this news emerging.
Hsu is going to get severance pay of C$400,000, while Hilson is going to get C$157,500. Market watchers are likely to watch the developments closely at Cronos Group as the company tries to draft in the replacement for these two key positions.
Despite the latest setback, many analysts believe that Cronos stock could well be the cannabis stock to own in 2020. There are some important factors behind the optimism, and perhaps the most important is the company’s relationship with tobacco giant Altria Group (NYSE:MO). Altria invested $2.4 billion in Cronos, picking up a 45% stake in the cannabis company. Altria is one of the biggest tobacco companies in the world, and its expertise will no doubt be of much use to Cronos Group.
Cronos stock is down about 45% over the past year.
Featured image: Canva
