The AusCann Group Holdings Ltd (ASX: AC8) share price is on the move on Friday after the release of an announcement.
In morning trade the medicinal cannabis company's shares are up 14% to 24 cents.
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What did AusCann announce?
This morning AusCann announced that it will be changing its Chief Executive Officer upon the completion of the acquisition of CannPal Animal Therapeutics Limited (ASX: CP1).
According to the release, the Founder and Managing Director of CannPal, Layton Mills, will lead the combined company. This decision was reached following a combined meeting of the Boards of CannPal and AusCann and will take effect from the completion of the transaction.
AusCann's current CEO, Nick Woolf, has decided to tender his resignation, but has agreed to stay with AusCann as Interim CEO until the transaction completes. After which, he will stay on in an advisory capacity to assist with an orderly transition until 30 June 2021.
Mr Woolf was only appointed CEO of AusCann in August of last year.
AusCann's Chairman, Max Johnston, commented: "Since Nick joined us in August 2020 he has been instrumental in moving forward the development of a robust pipeline with advancement of studies of the existing hard-shell capsules based on the Neuvis platform, initiating formulation work of a novel CBD only variant and engaging an experienced US-based team to develop additional product candidates addressing unmet health needs."
"In addition to this, Nick has also taken significant steps toward making AusCann more cost effective and efficient in utilisation of its assets and operations. We thank him for all his efforts in taking AusCann forward during his tenure whilst also progressing the proposed acquisition of CannPal. I am pleased that Nick has agreed to provide continuity during the prospective transition and wish him well in his future endeavours," he added.
The outgoing CEO, Mr Woolf, commented: "The combination of AusCann and CannPal has clear synergies including multiple revenue streams and the leverage of data in the animal health space for the development of human medicines and vice versa. Both companies have established a strong network of alliances that should accelerate success."
"I believe that the medicinal cannabis industry in Australia has significant growth potential and the combined company will be well placed to benefit from this," he concluded.
