Canopy Growth Names Constellation Brands' Klein as CEO

David Klein comes from Constellation Brands, where he served as chief financial officer.
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Canopy Growth CGC named David Klein as CEO, effective Jan. 14.

Klein comes from Constellation Brands (STZ) - Get Report, where he served as chief financial officer.

Klein replaces Canopy Growth CEO Mark Zekulin, who will to step down and resign his seat on the company's board, effective Dec. 20. Zekulin replaced Bruce Linton, who was fired in July.

Klein, the company said, has served on the cannabis company's board for more than a year and serves as its board chairman.

Canopy Growth said it intends to appoint a new chair upon Klein's effective date as CEO.

Constellation Brands, separately, said it named Garth Hankinson to replace Klein as chief financial officer, effective Jan. 13.

In October, Constellation Brands posted stronger-than-expected second-quarter earnings but recorded a loss of $484 million from its holding in Canopy Growth.

"Constellation has recognized a $757 million unrealized net gain in reported basis results since initial Canopy investment in November 2017; $839 million decrease in the fair value of Canopy investments was recognized for second quarter fiscal 2020," the company said when issuing its second-quarter report.

Canopy Growth shares rose 3.32% in premarket trading Monday to $19.27. The stock has declined 30.6% so far in 2019.

Shares of Constellation Brands rose slightly in premarket trading to $184.