Peter Aceto’s ouster comes three weeks after the regulatory body found the Ontario-based medical cannabis company had grown weed in unlicensed rooms. Eric Paul, the company’s chair, has also resigned at the board’s request. Robert Marcovitch, an independent board member who led the internal investigation into the unlicensed growing, was named interim CEO. The company’s stock was up 15.89 per cent in late afternoon trading, after falling 37.5 per cent in the wake of the scandal. Aceto has yet to speak publicly of his termination. In an Instagram post earlier in July, he pushed back against accusations that he misled investors, urging them to “let the dust settle.” (The Logic)
Talking point: This is the second termination of a high-profile cannabis executive in less than a month. Earlier in July, Bruce Linton was forced to resign as co-CEO of Canopy Growth over the company’s slower-than-expected growth. Aceto’s exit, meanwhile, centres on fraudulent activity intended to increase product volume and sales. The departures highlight opposing philosophies among cannabis investors, with one group prioritizing rapid growth and the other seeking a more measured path to profitability. Both companies’ stocks rose when their leaders were fired—a vote of confidence from investors looking for more financial and regulatory discipline in the sector.