Departures in the upper echelons of a company’s management almost always have an effect on a company’s stock price, and that is what happened this morning with Sundial Growers (NASDAQ:SNDL), SNDL stock dropping fast because of its news.
Sundial Growers Inc, the Canadian cannabis company, announced this morning that it is making a range of changes at the executive level. In addition to that, Sundial stated that the company’s Chief Executive Officer and the Chief Financial Officer are also going to depart.
Shocking News for Investors
The company revealed that these changes are all part of a cost-cutting initiative that has been launched recently. Sundial announced that Torsten Kuenzlen has resigned from his position as the CEO and will also relinquish his post as a director at Sundial. One of the members of the board, Zach George, is going to step in as the company’s new CEO.
The other notable departure from Sundial is that of Brian Harriman, who will step down from his post as the COO. Andrew Stordeur, who is currently the head of the company’s operations in Canada, is going to be the new COO.
The news was not received well by the market, and SNDL stock tanked by as much as 30% to $1.80 this morning. Investors do not like uncertainty, and that could be one of the reasons behind the drop today.
The crash in the stock this morning continues the recent trend for the stock. SNDL stock has gone down by as much as 20% over the course of the past week. Last week, Sundial Growers announced that it had laid off as much as 10% of its workforce in an effort to raise efficiency in the business.
However, the move was clearly not seen in that spirit by market participants, and SNDL stock has been in a downward spiral since then. At the time, the outgoing CEO of the company stated that it was a necessary step.
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