Bruce Linton, Founder and former CEO and Chairman of Canopy Growth Corporation, joins the Trade To Black podcast as we reflect on this past cannabis earnings season. While there’s been success stories with SNDL, TerrAscend, and Curaleaf, generally cannabis companies have been in decline over the last year as they struggle with revenues and debt.
First, we’ll kick off with our key takeaways from the second quarter of earnings. For the most part, it seems that increasing year over year isn’t too common for a company in the industry, regardless of how the company manages to achieve it. We discuss some of our favorites, how they did, and what we especially liked to see that might be attractive to investors. Be sure to also catch our earlier podcasts over the last couple weeks where we take a deeper dive into the Q2 reports and success stories of the few that are sitting on top.
But the thing that seems to be critically affecting the industry appears to be a lack of growth. Expenses can only be reduced so far, Linton suggests, and the only way for Canopy Growth at least to overcome some of their obstacles is to increase their rate of growth.
Where will Canopy go from here? Between their financial situation and the sale of the Hershey facility, is it possible for them to revitalize market share and reestablish themselves as a powerhouse in the cannabis sector?
It’s true that there are a lot of uncertainties surrounding Canopy’s upcoming shareholders meeting, its potential insolvencies, and the consolidation of its US assets. We’ll take a look at the value of cash versus equity value, and why it’s important to get enough cash to deal with the debt.
Where did all the money go? Bruce Linton explains more, and you’ll hear the scoop when you tune in.