Key Takeaways:
- Ascend Wellness Holdings has terminated CEO John Hartmann and CFO Mark Cassebaum.
- Samuel Brill, a current board member, has been appointed the new CEO.
- Leadership changes follow disappointing second-quarter financial results.
Ascend Wellness Holdings, Inc. (CSE: AAWH-U.CN) (OTCQX: AAWH) has immediately terminated CEO John Hartmann and CFO Mark Cassebaum.
Per a news release, Samuel Brill, a current board member, has been appointed the new CEO. Brill brings experience from his Invacare Holdings Corp. and Seventh Avenue Investments LLC roles.
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The release added that Co-founder Francis Perullo has been named president, and Roman Nemchenko, previously chief accounting officer, has been promoted to CFO.
The leadership changes follow a challenging second quarter for Ascend Wellness.
The company reported a net loss of $21.8 million, a sharp decline from a net income of $841,000 in the same period last year.
The release highlighted that increased competition in key markets like Illinois, Massachusetts, and New Jersey contributed to the decline.
The company has revised its full-year revenue growth forecast to 11-13% from 12-15% earlier, reflecting the impact of intensified competition and lower profitability in its wholesale business.
The release stated that the new leadership team will focus on stabilizing the company’s financial performance and addressing competitive pressures in key markets.
Learn more in this release.