Top 5 Takeaways from Bruce Linton’s Exclusive Interview with CFN Media at the NYC CWCB Expo
Ryan Allway
June 20th, 2019
App, Policy
CFN Media caught up with Bruce Linton, Co-CEO of Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) to discuss some of the cannabis industry’s biggest trends at the CWCB Expo in NYC in May 2019.
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‘We have another decade of wild revolution.’
The cannabis industry may be maturing in places like Canada and Uruguay where it has been federally legalized, but many other countries are just starting to regulate cannabis. Linton believes that there could be another decade of uneven regulations as countries liberalize their laws — particularly in areas where cannabis has been strictly governed.
Linton cites Malaysia and Thailand as two examples of these uneven and evolving regulations. In 2018, Malaysia began to discuss legalizing cannabis after a 29-year old man was sentenced to death for possession. Thailand passed legislation to legalize medical cannabis in December 2018, but the government is struggling with how to implement the law.
‘This could get a little bit protectionist.’
Many countries that legalize cannabis decide to import since it’s the easiest path forward. That is, there’s no need to license cultivation and extraction facilities. Some countries then decide to use only a regional supply with nearby countries to support the local economy and achieve political goals. A handful have then decided to bring supply in-house.
While it’s challenging to create a domestic framework, there are a growing number of successful examples. The benefit of growing cannabis in-country is that it’s harder for people to dislike it when it supports the local economy by creating jobs. The country could also become an exporter to nearby countries that are in the earlier stages of legalization.
‘Consumers don’t want to buy CBD, they want to buy the outcomes that CBD delivers.’
Canopy Growth’s business model has evolved to the point where they don’t want to be the grower. They want to work with other people that are in the business of tractors and property to supply the raw material. The company’s focus is on extracting cannabis concentrates to control the quality and creating the finished goods that ultimately reach consumers.
Linton sees Canopy Growth as leading the cannabis science revolution. That is, the company is focused on creating consistent products and doing the science to show that they can achieve outcomes. Stabilized ingredients power real science which creates real products. The trials involving these products are maturing and reaching the point of real insight.
‘[Europe’s cannabis industry is] not going to start the way that it did in Canada and the U.S.’
Europe has become a significant growth market over the coming years with a population that eclipses North America. Canopy Growth has expanded into Europe through a variety of acquisitions, including C3 in Germany and This Works in the UK, and sees potential in developing both pharmaceutical and consumer-focused products.
The U.S. and Canada have spent years developing and evolving their legalization frameworks. European markets will heed the lessons learned from these markets and the rollout could be very different than it was in these early markets.
‘There are so many names, I don’t even know 10% of them anymore.’
There are more than 400 publicly-traded cannabis companies and new companies are going public every week. Many of these companies are classified as “penny stocks” that trade for less than $1.00 on over-the-counter exchanges. Inexperienced investors can easily fall victim to investing in companies that invest more in PR than actually building a business.
Linton believes that cannabis ETFs are a good option for small investors — at least for a portion of their portfolios. Wealthy and/or experienced investors may look to buy a handful of cannabis companies that are larger and more reputably to capitalize on the industry’s growth.
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This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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