The Hydroponics Company Ltd's (ASX: THC) share price surged 14% higher to $0.68 today, following the announcement of a big change in the board of the medicinal cannabis company.
An extraordinary general meeting was held yesterday called by director Alan Beasley in seeking the removal of chairman Ian Mutton and three other directors. It also sought the appointment of pharmaceutical industry executive Lou Cattelan and barrister Gary Radcliff. All the resolutions passed with 70% of votes in favour.
Mr Beasley – who had been replaced by Mr. Mutton as chairman in October – justified the move with concerns over the company's governance and transparency.
Following Mutton's appointment, Hydroponics rocketed from $0.20c to over $1 a share, but the stock traded at just $0.60c two days ago. This amounted to a 60% share price growth since the company listed in May, underperforming industry peers like Auscann Group Holdings Ltd (ASX: AC8) and Cann Group Ltd (ASX: CAN), up 156% and 366% respectively over the same period.
Hydroponics needs new management now, as its CEO and CCO resigned earlier this week. The company will have its first AGM on March 23.
