Two of Canada's biggest cannabis companies reported quarterly revenue that beat expectations on Monday, but all anyone appeared to be interested in was their plans south of the border. 

Executives from Canopy Growth Corp. and Aurora Cannabis Inc. were both quick to discuss their thoughts on how their companies could take advantage of the growing support for cannabis legalization that extends across both geographic and party lines in the U.S. 

"We're excited by the prospect of participating in the U.S. THC market," said David Klein, Canopy chief executive officer, during a conference call with analysts. "We've already developed a U.S. ecosystem that positions us as a hemp and cannabis powerhouse when, not if, U.S. permissibility happens." 

Last week, states including Mississippi, New Jersey, South Dakota, Montana and Arizona voted in favour of legalizing either recreational or medical cannabis. Investors' focus on the U.S. market grew even sharper over the weekend after Joe Biden was called the winner of the U.S. presidential election on Saturday. Biden's election, and the likelihood that his Democratic Party will continue to control the House of Representatives, led to some renewed optimism that after decades of prohibition, cannabis will become a legal drug across the U.S. 

That led shares of several cannabis companies such as Tilray Inc., Aphria Inc., Cronos Group Inc. as well as Canopy to post new yearly highs. This is despite how many Canadian firms aren’t currently able to fully participate in the world's biggest consumer market given restrictions imposed by U.S. and Canadian stock exchanges as cannabis remains federally illegal. 

While Canopy and Aurora's quarterly results on Monday show a pattern of cost-cutting while focusing on revenue growth in the domestic Canadian market, both are keeping their eyes on U.S. developments. 

Canopy already has a growing U.S. CBD business with its First & Free brand and its lineup of Martha Stewart-branded gummies, while also expanding its Biosteel sports drink lineup with several high-profile athlete endorsements. The Smiths Falls, Ont.-based company also has a deal in place to acquire U.S. multi-state operator Acreage Holdings for about US$843 million no later than 60 days after cannabis is federally legalized. Acreage has begun to license some of Canopy's retail and product brands such as Tweed for the U.S. market. 

"Building these brands today allows us to generate revenues without the headwinds of regulatory challenges," Klein said. 

Aurora Cannabis, however, offers a slightly different perspective. The company does have some exposure to the U.S. with its purchase of CBD distributor Reliva LLC earlier this year for about US$40 million. Aurora's CEO Miguel Martin said the company is open to striking partnerships in the U.S. once cannabis is legalized and touts how its experience developing a robust cannabis business in a federally-regulated environment such as Canada is a valuable asset for any U.S. operator. 

"When there is an opening for us in the U.S, we think that we'll have a ton of resources and a ton of interest because of all those experiences," Martin told analysts during a conference call on Monday. 

Martin added that Aurora's research into cannabis science and genetics is something that the company views as "portable" that could find its way to the U.S. without the company developing a physical presence there. 

The billion-dollar question remains unresolved on what U.S. political party will control the Senate. A runoff for two seats in Georgia scheduled for January will determine whether the Democrat blue wave will continue, or if Republicans will retain control of the Senate. 

If the latter occurs, Eight Capital analyst Graeme Kreindler said in a research note that U.S. cannabis operators will stand to benefit from a lack of competition from their Canadian peers, while large pools of outside capital will remain hesitant to take part in the cannabis sector. That leaves the upcoming mid-term election in 2022 as the next opportunity for industry reform, he added. 

"We believe the market is not appreciating the nuances of potential gridlock between the House, Senate, and White House," Kreindler said. 

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the ongoing growth of the Canadian recreational cannabis industry. Read more here and subscribe to our Cannabis Canada newsletter to have the latest news delivered directly to your inbox every week.

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