In a move that certainly didn’t surprise anyone here at TheCannalysts, Zenabis has dumped Grieve, appointed an interim CEO, and have begun initiating a search for a new permanent one.
The <ahem> creative ‘Rights’ offering – done to raise capital directly from shareholders – also cratered the share price by installing a known share value in advance.
Hey, give Trade two prices for an asset with some time in-between….well…..duh.
Combined with recent moves (like the moronic sublet of space to a competitor, and a previous last <last!> chance re-finance done just a couple months earlier), Grieve not only signalled desperation, but also demonstrated it with an ill-advised ‘Rights’ offering. At least he can take some consolation in knowing his name will be immortalized in a business school textbook somewhere. Although probably not for the reasons he’d prefer.
That he got that far down the road before ‘Big Daddy Board’ stepped in shouldn’t fill one with hope. Nobody pulls off something like that ‘Rights’ stunt without the Board agreeing, and yet he’s the one who gets the punt. It’s also telling that they weren’t prepared for this. Yeep.
At the bottom of it – and somewhat harsh – I suspect he’s simply a high-finance type who couldn’t run a lemonade stand. And if anything Zenabis has shown, is that they needed to operationalize. If you’re familiar with our ‘Guide to Retail Investing’, you’ll know that companies need different leaders at different times for different purposes. And Grieve wasn’t the one $ZENA needed, maybe for their very survival.
In the coming year there will be more Grieves, more creative ‘offerings’, and more firings to come. The lights on many company dashboards have been starting to flash for awhile.
The preceding is the opinion of the author, and is in no way intended to be a recommendation to buy or sell any security or derivative. The author holds no position in $ZENA
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