Bruce Linton on Chuck Schumer and Cannabis in the US: “They’ll do a Trudeau”
At the end of June, we met with cannabis mogul Bruce Linton to discuss Creso Pharma and Red Light Holland’s merger into The HighBrid Lab, and his intention to be part of the board. Linton joins us again today on The Dales Report to discuss a few updates for HighBrid, plus the idea of “psychedelics fatigue.” We also take a look at where Linton thinks the cannabis industry is headed in the United States in the wake of proposed federal legalization.
Here’s some highlights from the interview:
Linton will become chairman of the bord of The HighBrid Labs
This news isn’t unexpected, but it will be finalized conditional upon the closing of the merger between Red Light Holland and Creso Pharma – plus shareholder approval.
Linton says that he’s already in calls related to The HighBrid Labs’ future plans. When putting the pieces together, he says, you want to create more value than you paid. Linton expects to look first at the sales plans for their products, the geographies that they need to roll into, and then who might likely next become an acquisitions target.
Despite Chuck Schumer’s proposal, Linton doesn’t expect cannabis legalization to be swift
“A politician’s job is not to serve us, it’s to get re-elected. … The current democrats are elected and they don’t gotta be re-elected for a bit. I think Schumer made a move to position that they were the first active mover on a structured approach to cannabis and I think this can gets kicked around until we get close to the next election and then they do a Trudeau which they say, ‘I promise if you get out of your house, get out of your couch, go vote. When I’m elected in this term, I will make this regulatory framework happen for cannabis,’” says Linton.
Linton thinks cannabis legalization can happen but predicts a SOP of another few years
“I’m of the view that we have another three more years at least of our current operating mode, which can be super good because there’s a high profitability in certain states, there’s a bunch of smaller states, there’s going to be a bunch of states that change their status positively. So, I think there’s a robust market in the US. I wouldn’t run after trying to buy a big MSO because they trade at crazy multiples, but if you look at the multiples, a lot of the small THC guys, profitable trade act, it’s a fraction of the big guys,” he says.
Acquisition of Halucinex continues; no timeline on getting into clinics
This past March, Creso Pharma Limited (ASX:CPH, FRA:1X8) signed an agreement to acquire Halucenex Life Sciences Inc. an established psychedelics company focused on developing treatments for Treatment Resistant Depression in individuals suffering from PTSD.
Linton says that unfortunately no fixed timeline can be provided on when Creso might get into the clinic. He says, however the direction is right.
Linton believes psychedelic fatigue will be combated with time and sophistication
While cannabis is moving well, Linton agrees that the news chatter about psychedelics has been fatiguing to investors, especially since there have been big promises but little movement.
Linton believes that by the time people get to the back end of 2021, however, people will be using more discrete words and a richer vocabulary to describe what they’re in favor of and what they’re not yet sure about.
“It needs time and sophistication,” he says.