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CannaPharmaRX, Inc. (OTC Markets:CPMD), a Delaware-incorporated pharmaceutical company with a market capitalization of $2.63 million, announced today the appointment of Constantine Nkafu as the interim CEO and the reshuffling of its Board of Directors. According to InvestingPro data, the company faces significant operational challenges, with its stock down nearly 73% over the past year. The changes come as part of the company’s ongoing management and operational adjustments.
Constantine Nkafu, who has been managing the company’s operations for several months, has now officially taken the role of interim CEO. With his extensive background in the Pharmaceutical (TADAWUL:2070), Cannabis, and Medical (TASE:BLWV) Device industries, Nkafu brings a wealth of experience in regulatory affairs and operational management. He faces significant challenges, as InvestingPro analysis shows the company’s current ratio at 0.07, indicating potential liquidity concerns. He also serves as the CEO of the company’s subsidiary, 2323414 Alberta Ltd., drawing an annual salary of $97,000 plus benefits and bonuses.
Additionally, following an agreement with LTB Management, LLC, the holder of Series C Preferred Shares, the company has made significant changes to its Board of Directors. Amir Tal, representing LTB Management, exercised his right to appoint three individuals to the Board. As a result, Nkafu and Elliot Zemel have been appointed as new board members. Zemel, aged 40, has diverse experience across healthcare, e-commerce, and real estate management sectors. Both appointees have received authorization from Health Canada to serve as directors of a Canadian cannabis company and are expected to enter into indemnification agreements with CannaPharmaRX.
The company’s board now comprises Richard Orman, Dominic Colvin, Anthony Michael Panek, Constantine Nkafu, and Elliot Zemel. While there is no current compensation plan for directors, it is anticipated that Nkafu and Zemel will be included in any future compensatory programs.
This reshaping of leadership and board composition underscores CannaPharmaRX’s commitment to aligning its strategic direction with experienced professionals who can navigate the complexities of the pharmaceutical and cannabis markets. With annual revenue of $0.34 million and significant operational challenges ahead, the new leadership team faces the task of improving the company’s financial health, which InvestingPro currently rates as "FAIR" with an overall score of 1.89. Subscribers to InvestingPro can access 13 additional key insights about CPMD’s financial position and market performance.
The information in this article is based on a press release statement filed with the SEC.
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