business profile
20
Q&A | New CEO Aaron Morse
CANNASCANDAL Anchorage's Great Northern Cannabis changes up operations — starting at the top
Great Northern Cannabis made headlines for all the wrong reasons in early May after a recording of the former VP of Cultivation, Jordan Huss, went viral online. Here it was revealed that the previous leadership of the company had sought to sell 100 pounds of marijuana suspected of being tainted with mold, which was acquired while purchasing the licenses and leasing the facilities of another local cultivator, RC Tinderbox.
aklEAF.COM
The recorded phone conversation implicates that the plan came from the top of the company, COO Eric Logan, and was successfully carried out to the ire of employees. Since the recording went public, the structure at the top of the company has changed dramatically, and for the better. The individuals involved have all been removed from their positions, with the new leadership currently taking shape. Recently appointed CEO Aaron Morse was eager to sit down with us and discuss the company's response.
GREAT NORTHERN CANNABIS
GREATNORTHERNCANNABIS.COM @GREATNORTHERNCANNABISAK
JUNE 2020
When did the board of the company first become aware of the actions that had taken place? First, let me say, Great Northern Cannabis has taken these matters very seriously. And while there are currently two ongoing investigations to determine the exact circumstances, I want to apologize on behalf of Great Northern Cannabis to our customers and to the Cannabis industry for betraying their trust. It appears that the prior Great Northern Cannabis Board of Directors learned of these allegations sometime in April. On April 27, given these allegations and other mismanagement, Great Northern Cannabis shareholders demanded an immediate vote of confidence on the board - in which they removed the entire board with a resounding vote of no confidence. In addition to the current Alcohol & Marijuana Control Office investigation (AMCO), Great Northern Cannabis is conducting an internal investigation to determine the facts and timeline of the events, as well as the parties that were involved. Although the investigations are still underway, Great Northern Cannabis has cut all ties with former CEO Steve Brashear, former COO Eric Logan and former VP of Cultivation Jordan Huss. What was the general reaction to this revelation? My own reaction was shock and disbelief, and I think other shareholders had
similar feelings. From the outset, Great Northern’s motto was ‘100% compliance, 100% of the time.’ The founder and CEO came from a white collar regulatory compliance background in the energy sector and instilled confidence that Great Northern would be well managed, transparent and completely above board. This sentiment was so strong that several notable Alaskan public figures felt comfortable investing in Great Northern. Has appropriate action been taken against all those involved? From an internal company governance perspective, upon learning of the alleged events the shareholders acted immediately and decisively. Shareholders replaced the entire Board of Directors and the entire executive management team. To ensure a fully independent board, company bylaw changes are being made such that employees of Great Northern may no longer serve on the Board of Directors. Great Northern self-reported the allegations to AMCO, and the company is fully and transparently cooperating with AMCO’s ongoing investigation. Additionally, the new Board of Directors and myself as CEO are working diligently to foster a company-wide culture focused on regulatory compliance and transpar-
