Surterra Wellness, a fast-growing marijuana company based in Atlanta, announced it hired a top executive from Kellogg Corporation as chief financial officer. Fareed Khan, the latest Kellogg exec to leave the Fortune 500 company for the cannabis sector, will be in charge of corporate finance, investor relations, taxes and shared services for Surterra. He earned total compensation of roughly $3.1 million in 2018 before leaving Kellogg for Surterra, which recently closed on a $100-million share offering whose net proceeds will be used to fund acquisitions and capital expenditure.
Khan replaces current Surterra CFO James Whitcomb, who will take over the firms’ executive director of corporate development. Khan is the third major executive to join the cannabis industry from Kellogg, a consumer packaged goods (CPG) firm that has a market cap of about $18.6 billion.
He was preceded in his move to the cannabis sector by Ed Brown, former president and CEO of The Patron Spirits Co. Brown was a participant in the recent funding round and Kevin Fisher, founder of cannabis company New England Treatment Access (NETA) and biopharmaceutical group Molecular Infusions. Surterra acquired both NETA and Molecular Infusions recently.
The $100 million raise follows a Surterra funding in November 2018 of almost $55 million as part of an overall plan to raise $165.5-million. Surterra has been on an expansion spree, announcing a $100 million biosynthesis licensing deal with Intrexon on June 18, 2019. The company operates 26 dispensaries in Florida and also has operations in Massachusetts, Nevada and Texas.
Surterra’s CEO, hired in November 2018, is Beau Wrigley, former CEO of Wrigley Chewing Gum.
Information for this article was found on MJBizDaily.com