Zenabis stock is gaining today after Zenabis Global (TSX:ZENA) (OTCPK:ZBISF) announced that its former CEO, Kevin Coft, would be resuming the role on an interim basis beginning immediately. He will replace Andrew Grieve, whose contract was set to expire soon.
Difficult Year for Zenabis Stock
After a difficult year that saw Zenabis stock tank as much as 96%, the board has clearly become dissatisfied with Grieve's tenure and so have decided his time as CEO has come to an end. Recent weeks and months have seen a spate of bad news for Zenabis Global, including reports that one of the company's facilities failed an EU quality compliance inspection, as well as hugely underwhelming quarterly results that saw revenue more than halve in the most recent earnings report.
Grieve also oversaw a recent $20 million CAD rights offering of Zenabis stock to help improve the company's capital position, and while the offering was oversubscribed, the shares were offered at the discounted price of $0.15.
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Zenabis Co-Founder Takes Charge
"The Board thanks Kevin for taking on the role of Chief Executive Officer on an interim basis. We look forward to working with him as we complete the final phase of our operational ramp-up into early 2020, and as we further consolidate our position as a leading Canadian cannabis licensed producer," said Monty Sikka, chairman of Zenabis Global. Grieve will continue to serve as a member of the Board of Directors. Zenabis stock is currently up 2.7% on the news.
Grieve's replacement on an interim basis, Kevin Coft, is one of the company's founders prior to its amalgamation with Bevo Agro and currently serves as the Chief Facilities Officer where he is responsible for the buildout of the company's numerous facilities across Canada. "Zenabis has come a long way in a short period of time, and I am excited about leading the team on an interim basis as we enter the next chapter," said Coft on his new appointment. Zenabis hopes to appoint a permanent CEO early next year, with Zenabis stock currently trading for just $0.19.
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