Ascend Wellness becomes third cannabis company to jettison its chief executive this month

By Steve Gelsi

Ascend Wellness CEO John Hartmann is out, while Canopy Growth's David Klein sets retirement plan

Ascend Wellness Holdings Inc. has named a new chief executive, the New York-based cannabis company said Thursday. It is the third big North American cannabis company this month to replace its top executive.

While John Hartmann is out as CEO, Ascend Wellness (AAWH) is keeping its executive chair in place.

Curaleaf Holdings (CURLF), whose CEO, Matt Darin, retired in August, is doing the same.

Canopy Growth Corp. (CGC) announced Aug. 16 that its chief executive, David Klein, plans to retire after the end of the company's fiscal year on March 31.

Ascend Wellness said that Samuel Brill, the company's lead independent director and president of Seventh Avenue Investments LLC, a private-equity investment firm for a New York-based family office, has been named chief executive.

The company said Hartmann is no longer chief executive and did not provide any additional comment.

Abner Kurtin, who is continuing as executive chair of Ascend Wellness, said the leadership change will address performance challenges through a realignment of strategy.

"We are confident that the changes will bring our focus back to the basics with an emphasis on the fundamentals and will position [Ascend Wellness] for future success," Kurtin said in a prepared statement.

Ascend Wellness also named Francis Perullo as president. He is a co-founder of the company as well as a board member and former interim chief executive.

Ascend Wellness also said its executive vice president and accounting chief, Roman Nemchenko, is the company's new financial chief, and that former financial chief Mark Cassebaum has been terminated.

Canopy Growth, meanwhile, said it is in the process of hiring an executive search firm to find a new chief executive.

Meanwhile, Boris Jordan, executive chair and co-founder of Curaleaf, became chief executive of the company on Aug. 16 upon the retirement of Darin after about two years in the job.

Ascend Wellness's stock was down 11.8% on Tuesday during a selloff in the sector on the heels of a move by the Drug Enforcement Administration to set a hearing on the rescheduling of cannabis for Dec. 2, after the presidential election.

Curaleaf's stock was down 8.4% on Tuesday, while Canopy Growth's dropped 10.7%.

-Steve Gelsi

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08-27-24 1219ET

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