Former Canopy Growth CEO Bruce Linton Axed from Vireo Health

Linton was terminated on an "entirely without-cause basis, effective immediately". However, he's already poised to bounce back with the launch of his new company Collective Growth Corp.   

The multistate operator Vireo Health (CNSX: VREO) announced this week that it had terminated its contract with former Canopy Growth (NYSE:CGC) Executive Chairman Bruce Linton.

The company has stated that it doesn't plan to replace Linton—who only joined Vireo Health in November 2019—and claims that the termination was made on an "entirely without-cause basis, effective immediately."

Linton's dismissal comes hot on the heels of the infamous incident in July last year, when Linton was fired as co-CEO of Canopy Growth, less than a week after Constellation Brands (NYSE:STZ)—which was a major investor in the company—following the release of quarterly results.

We wish Bruce well in his future endeavours. Our organization will remain focused on executing a strategy which benefits all stakeholders and developing our core medical markets of Arizona, Maryland, Minnesota, New Mexico, New York, and Pennsylvania. Vireo Health CEO, Kyle Kingsley

According to Linton, his exit from Vireo Health may have been the result of conflict with the company's upper management, following a $10.5-million financing round—with Linton being responsible for $1.3 million of funding—that wrapped up in March.

  "When you bring the money in, I wanted to make sure we use it and go hard. I am a more demanding person when I and business colleagues own the company," Linton said in an interview with BNN Bloomberg.

"I coordinated financing with the company. It closed in March, I participated in it and perhaps my demanding nature was accelerated because of those events."

"It's [Vireo Health] a good company, but probably when I'm around 82 years old, I'll be more relaxed and that will be easier for me to stop thinking about taking over the world."

However, the unceremonious parting of ways with Vireo Health hasn't slowed Linton down, as the former CEO has already announced the launch of a new Dublin-based cannabis investment fund named Oskare Capital.

Linton claims that the fund will aim to raise approximately €150 million—broken up into three tranches—to fund early stage cannabis companies that develop medical and pharmaceutical products.

"We're going to be picking up early-stage [intellectual property] used in other fields that aren't cannabinoids and forming companies through something like an incubator," Linton said.

"So we'll try to have some of the early tech that may be a bit out there that Big Pharma or Big [consumer-packaged goods] companies could one day be interested in."

Linton has also confirmed that he is currently taking pitches for his special purpose acquisition company, Collective Growth Corp (NASDAQ: CGROU), which has already raised USD $150 million after going public on the NASDAQ last month. The industry leader is also becoming an active presence in the psychedelics sector, after having recently taken on board positions at Red Light Holland Corp and Mind Medicine Inc.

This pot stock could reach new heights in 2020 due to Coronavirus

The COVID-19 pandemic is showing no signs of slowing down, and as global markets enter meltdown many cannabis companies are feeling the effects of capital crunch.

While the market crash will continue for some time, it represents a golden opportunity for investors who are capable of riding out the volatility until share prices rally.

Luckily, one pot stock has developed antimicrobial drug that can already treat two superbugs while limiting their ability to develop antibiotic resistance.

Investors can also start picking up shares at rock bottom prices, as global investor sentiment continues to dampen thanks to COVID-19.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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