Vitura Health founder Rodney Cocks is stepping down as CEO

Rodney Cocks, the CEO and co-founder of digital health group Vitura Health (ASX: VIT), has announced his resignation amid a challenging time for the company – one of the few in the Australian medical cannabis space to be turning a profit.

News of Cocks’ departure was announced alongside a request from the company to halt trading in shares before Vitura announces “certain legal proceedings relating to a material contract.”

Cocks, who co-founded Vitura with business partner Peter Righetti in 2017 as a 50-50 joint venture with Canadian cannabis giant Cronos Group Inc., has led the company for the past six years, including its transition to an ASX-listed company in November 2019.

The company, which changed its name to Vitura Health in February last year to reflect a diversification of its activities following the acquisition of medical cannabis group CDA Health in 202, was founded around the CanView platform that enables the connection of authorized prescribers of medical cannabis with dispensing pharmacies and patients.

The group then strengthened its telehealth credentials last year with the acquisition of Doctors on Demand.

In December, Vitura Health announced the sale of its two millionth unit of medical cannabis through the CanView platform, which is supported by more than 4,100 pharmacists/prescribers.

Announcing Cocks’ resignation, Vitura Health paid tribute to the CEO’s leadership in creating “Australia’s leading listed medical cannabis company” and driving record profits in FY23, leading to the payout of the second annual dividend.

“From a very small idea as a co-founder in 2017, we have grown Vitura into an internationally renowned company that delivers every day for our patients, prescribers, pharmacies, suppliers,” says Cocks.

“I look forward to supporting a transition between now and when I leave the company on June 30, 2024 – and to seeing how Vitura continues to thrive in the future as it enters its next phase of growth.”

Vitura Health has not provided any further information on the reasons for Cocks’ departure, which follows the company’s announcement of Robert Iervasi’s appointment as chairman in February this year.

“On behalf of Vitura, I would like to thank Rodney for his contribution and commitment to the company over the past six years,” said Iervasi, former CEO of Asahi Beverages, owner of Carlton and United Breweries.

“Key achievements during his tenure include co-founding the company, the initial public offering, the acquisitions of CDA Health and Doctors on Demand, the establishment of the Melbourne Distribution Center and the build-out of the CanView platform.

“Rodney’s transition provides the board with the opportunity to also finalize the company’s future strategy for FY25 and beyond, details of which will be presented to shareholders in the coming weeks.”

Cocks, whose early career began as an Australian Army infantry officer and who was later appointed as a senior member of the British government’s counter-narcotics team at the British Embassy in Kabul, remains a shareholder in the company. He and his co-founder Righetti both graduated from the Royal Military College in Duntroon.

Cocks received a Conspicuous Service Medal for his actions following the 2002 Bali bombings where, despite injuries from the terrorist attack, he helped evacuate the injured from damaged buildings and provided first aid to survivors.

While the Vitura Health business continues to deliver positive earnings results, there were clear challenges in the half-year net profit of $3.27 million – down 57 percent from a year earlier.

This despite a 4 percent increase in revenue to $59.97 million, as results were impacted by one-off costs resulting from the acquisition of Doctors on Demand.

Doctors on call helped boost the top line as sales volumes for cannabis products were marginally lower during the period, while margins also declined in line with industry trends.

In full year 23, Vitura reported a profit of $13.8 million on revenue of $117.3 million, which led to the company issuing a fully franked dividend of 1c per share.

Meanwhile, Vitura Health is currently looking for a replacement for Crooks as CEO, with CFO Tom Howitt immediately stepping in to take on the role of interim CEO.

Financial controller Ben Cirillo has been appointed interim CFO during this transition period.