The Elixinol Global Ltd (ASX: EXL) share price looks set to end the week on a very disappointing note.
The cannabis company's shares are down over 9% to a 52-week low of 58 cents this afternoon. This means Elixinol Global's shares have fallen over 25% since reaching 78 cents on Wednesday.
It also means that its shares are now down 90% from their 52-week high of $5.93.
Why is the Elixinol Global share price sinking lower?
Elixinol Global's shares have come under pressure after announcing the resignation of one of its executives.
According to the release, the company's chief innovation officer and co-founder, Paul Benhaim, has resigned from his role with immediate effect for personal reasons. Mr Benhaim will continue as a director of the company in a non-executive capacity.
The outgoing executive explained that he wishes to spend more time with his family.
He said "I co-founded Elixinol in 2014, Hemp Foods Australia in 1999 and have been involved in the hemp industry for over 25 years. It's time for me to take time out to spend more time with my family. I look forward to continuing to work with the Board and the management team in an ongoing director capacity to deliver on the growth opportunities that lie ahead for the Company."
What now?
Mr Benhaim is more than just the chief innovation officer, he is the company's largest shareholder.
At the last count he held a total of 54,623,008 ordinary shares or 44% of its issued shares. Whilst these shares are currently under mandatory escrow, it won't be long until they will be released from escrow.
However, Benhaim doesn't intend to sell them all at once. He has committed to selling no more than 10% of his holding within the first six months of their release.
He advised: "Further, I would like to recognise that the market may be interested in my intentions regarding my trust's 54,623,008 ordinary shares held under mandatory escrow which will be released from ASX imposed escrow on 8 January 2020. I will not sell more than 10% (5,462,300) of my holding for six months following release from escrow, and no more than 10% of my holding in the following six months after that."
Also on the move in the cannabis industry today are Althea Group Holdings Ltd (ASX: AGH) and Auscann Group Holdings Ltd (ASX: AC8). Their shares are down 3% and 4%, respectively, this afternoon. This may be due to concerns over increasing competition in the medicinal cannabis industry.
