(Bloomberg) -- Hexo Corp. co-founder Sebastien St-Louis was ousted from his role as chief executive officer after an investor alleged the company “has not acted in the best interest of its shareholders” under his leadership, BNN Bloomberg reported.
In a letter to the board of directors, Adam Arviv said St-Louis had over-leveraged Hexo to help finance deals to acquire cannabis operators Zenabis Global Inc. and 48North Cannabis Corp. “You continuously make negligent decisions and deliver poor financial performance,” Arviv said in the letter.
BNN Bloomberg said Arviv and St-Louis declined to comment. The letter was reported first by Yahoo Canada Finance.
“Notwithstanding Mr. Arviv's letter, this was the right time to make this change,” Hexo spokesperson Sarah Brown said in an emailed statement. “The departure of Sebastien marks the next stage of the company's strategic evolution. Given Hexo's recent acquisitions, there is a real opportunity for a new leader to leverage Hexo's market-leading position to drive growth and profitability.”
Hexo's board unanimously voted to dismiss St-Louis from his duties, BNN Bloomberg said, citing a person familiar with the matter.
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