Bruce Linton: What Canopy is doing is like Amazon's growth strategy
Canopy Growth shares slide after disappointing Q4, but Linton isn’t too concerned about sell-off
As investors punished Canopy Growth Corp. on Friday following a disappointing quarter, the company’s CEO Bruce Linton told BNN Bloomberg in an interview he isn’t fretting too much. “If investors want us to be profitable globally right now, then I’m working at the wrong company,” said Linton. Canopy, which posted a net loss of $323.4 million in its fiscal fourth quarter late Thursday, attributed the decline to to rising costs associated with building out the company’s facilities needed to grow cannabis and refine it into other products such as infused chocolate bars and beverages. While the quarterly report drove down Canopy’s share price, Linton - who has been courting large, institutional investors to jump on the company’s bandwagon - doesn’t believe the sell-off is warranted. “If you sell today, you're basically saying [Canopy's] built all this great stuff but don't want to be around when the earnings per share climb,” he said.
Canada’s cannabis belt booming thanks to country-wide shortage
It’s a good time to be working in Canada’s cannabis belt. The London Free Press reports that 2,300 people are employed at more than 15 licensed cannabis growers, including some of the largest in Canada, located in southwestern Ontario. The region – previosuly stung from the loss of automotive and other manufacturing companies - is looking to add hundreds more jobs. This comes as pot producers build out their operations in response to a country-wide supply shortage and anticipated global demand. “So many companies are just running to scale up,” said Maurizio Calconi, the head of recruiting for Cannabis Compliance, an industry consulting firm.
Aurora outlines plans for upcoming vape, edibles and extracts market
Aurora Cannabis provided the first details on its entry into the upcoming Canadian vapes, concentrates, and edibles market. The company said it will launch a new range of vape products, including; closed system products, 510 thread cartridges and disposable single-use units, at various price points. Aurora added it has established 450,000 square feet of production space across Canada to handle the production, packaging, logistics and distribution of those next-generation cannabis products. Its Aurora Air facility in Edmonton is in the final stages of receiving a Health Canada licence and is slated to be home to the company’s edibles production line.
New York state lawmakers decriminalize cannabis, expunge criminal records
After failing to pass legislation that would legalize cannabis, New York state lawmakers decriminalized small amounts of marijuana and provided procedures to expunge records of prior pot-related convictions. Bloomberg reports the measure allows individuals to avoid criminal penalties for holding less than two ounces (57 grams) of the drug. The law still calls for a US$50 fine for holding less than an ounce, and US$200 for one-to-two ounces. A bill to expand the medical use of cannabis was dropped from consideration.
-- The price of a gram of cannabis in Canada, down 3.9 per cent from the prior week, according to the Cannabis Benchmark’s Canada Cannabis Spot Index. This equates to US$2,370 per pound at current exchange rates.
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.