Two executives at Cronos Group (NASDAQ:CRON) have exited the Canadian marijuana company. In a regulatory filing submitted after market hours Wednesday, Cronos revealed that chief operating officer David Hsu and chief commercial officer William Hilson had both resigned from the company.
Cronos did not specify a reason for the departure of either executive. It also did not reveal whether it has named replacements or is currently conducting searches for replacements.
Hsu's LinkedIn profile indicates that he had been at Cronos since September 2016 as COO. Hilson, who is also listed as founding CFO of the company, has the same date as the beginning of his tenure at the company on his LinkedIn page.
Both men resigned effective Dec. 31, 2019, and have signed separation agreements with stipulations that include a "general release of all claims against the Company and its affiliates and the executive's continuing obligations with certain covenants under his respective employment agreement with the Company." The agreements also contain nondisparagement provisions, among other obligations.
Hsu is to receive a severance payment of 400,000 Canadian dollars ($305,373), less certain deductions and withholding. Hilson will also get a severance, amounting to CA$167,500, also with some deductions and withholding. The two men are to be allowed to vest any company options they currently hold.
Cronos has not yet issued a press release on the matter. The actively traded marijuana stock has ridden a recent wave of optimism for the sector, and was down slightly in after-hours trading Wednesday.