Neptune Wellness Solutions (NEPT 0.71%) has hired a new chief operating officer: David Mayers joins its C-suite after a stretch in the same role at fellow cannabis extraction specialist MediPharm Labs (MEDIF 7.52%).
Appropriately for both Neptune and MediPharm, both of which focus on the science of cannabis, Mayers has a background in the pharmaceutical industry.
Prior to his stint at MediPharm, which ran from September 2018 to August 2019, according to his LinkedIn profile, he worked in high-level managerial positions at various privately held companies in the sector and in businesses related to it, including a period as CEO of Impopharma.
In the press release announcing Mayers' appointment, Neptune said that he "will play a critical role in implementing new systems and processes to drive Neptune's operational excellence."
Among marijuana companies, extraction services providers like Neptune (and MediPharm) are rather scarce on the stock exchange. They have attracted some investor interest of late due to the rollout of the Cannabis 2.0 legalization phase in Canada, which made cannabis derivative products such as gummies and chocolates legal for recreational use.
Both Neptune and MediPharm are headquartered in Canada, although last summer, Neptune acquired North Carolina-based SugarLeaf. The $18 million cash-and-stock deal for the company, which has significant extraction capacity, gave Neptune a notable asset in the U.S. This positions it to better take advantage of opportunities in this market for cannabidiol (CBD) products.
On Monday, Neptune's stock followed the broader market downward, falling by just over 20% on the day.