Late Wednesday night, Canadian cannabis company Cronos Group (NASDAQ:CRON) filed an 8-K form with the SEC, advising that way back on Dec. 31, both its chief operating officer and its chief commercial officer resigned from the company.
Now, you might expect that such a late-night revelation, combined with the company waiting so long to reveal it at all, might not have gone over well with Cronos' shareholders. You might even have expected some of them to be sufficiently upset to sell the stock -- but that didn't happen. In fact, once trading resumed on the Nasdaq Thursday, Cronos stock hardly budged, actually closing the day up $0.01 a share.
But no such luck on Friday.
Perhaps it just took investors a few hours to react to the news, but on Friday, it appears people finally did -- and Cronos stock closed the day down 9.2%.
Whether they reacted to the news itself, or perhaps to specific details (such as the fact that the two execs departed the company with combined severance payments in excess of half a million Canadian dollars), or to the fact that Cronos disclosed these departures in an SEC filing and never issued a press release to its investors, isn't clear.
What does seem clear is that, now that investors have finally heard the news, they're not happy about it.
With Cronos stock down nearly 48% over the last 52 weeks -- still unprofitable, still making revenue of less than $27 million annually (resulting in a price-to-sales ratio of nearly 100), and now, management apparently jumping ship in pairs (if not yet droves) -- they may have even less to be happy about in the quarters to come.