Organigram Holdings Inc. announced that CEO George Engel is stepping down effective immediately, with Peter Amirault the board chairman, assuming Mr. Engel’s responsibilities immediately.
The move comes only a month after the announcement of British American Tobacco’s equity investment in Organigram, a leading Canadian cannabis licensed producer.
Unlike other Canadian LPs benefiting from the booming Canadian Cannabis market, Organigram struggled last year. Management cited COVID-19 and staffing shortages as reasons for missing their goals during the pandemic.
It also laid off at least 220 workers, or roughly one-quarter of its staff.
Engel has led the company since 2017 and was recently involved with signing Organigram’s $221-million deal with British American Tobacco.
The Canadian LP, based in Moncton, New Brunswick, did not offer details on Engel’s departure, but says he will continue to act as a special adviser to the board during a “transition period.”
Engel will remain as a special advisor to the company’s board of directors through a transition period while current board chairman, Peter Amirault, serves as interim executive chair. The board’s Governance and Nominating committee chair, Geoff Machum will serve as independent lead director.
“Greg has helped guide the company during a global pandemic and through period of significant change within our sector, one in which he is a recognized leader. We are pleased that he will continue to serve as special advisor to the board through this period of transition,” said Machum in a company statement.
“We are equally pleased that Peter Amirault will be leading Organigram as executive chair, while we begin a search process for a permanent CEO” the statement from Organigram reads.
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