Abcann Global (ABCN.V) brings in former Pfizer exec as new CEO

Transitioning from a capital markets CEO to a pharma CEO is a smart move for a licensed cannabis producer about to rapidly expand its output, and that’s exactly what Abcann Global (ABCN.V) did this morning, in announcing a new Chief Executive in former Merus Labs (MSL.T, MSLI:NASDAQ), Teva Canada, and Taro Canada CEO, Barry Fishman.

Former Abcann CEO Aaron Keay will stay on as a director, and will focus on the public markets and potential M&A activity.

ABCN stock has had an up and down run since it went public earlier this year, but never dipped below 18% from its opening price, despite a general slump in the marijuana market.

With streaming deals struck with Cannabis Wheaton (CBW.V) helping to finance a substantial expansion to the company growing operations, from 30k sq ft to 150k sq ft in Napanee, Ontario, under Keay’s leadership, the firm also shifted into opportunities in Australia, Israel, and Germany. I’m told it’s likely around $12m has been received by the company recently in warrants, which would put the cash position of the organization at around $48 million – aroundĀ half its current market cap.

In Fishman, the company has a seasoned chief executive who formerly served as VP of Marketing at Pfizer, and took Merus Labs to a $342 million takeover by Norgine B.V as recently as July of this year. To sign him so soon after a nine-figure exit is quite the coup.

In terms of marijuana experience, he currently sits on the board of Aurora Cannabis (ACB.V), and was on the board of Bedrocan when it was taken out by Canopy Growth (WEED.T).

He takes over an outfit that is renowned in the business for consistent, high quality product that has previously been purchased by competitors for resale. The company tells me it’s getting around 300 grams per sq. ft in yield, which according to our research places it way above every other producer bar MedReleaf (LEAF.T).

The company sits on an undervalued $84 million market cap as the weed space looks to be picking up steam.

— Chris Parry

FULL DISCLOSURE: Abcann Global is an Equity.Guru marketing client

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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De minimis
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Pesticide free, fully organic and far higher yields than any other producer. My bs detector just blew up.