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Bruce Linton Opens Up On Canopy Growth Nearly 3 Years After Leaving The Company

In this Trade To Black Podcast episode, TDR Founder Shadd Dales and lead financial writer Benjamin A. Smith speak with former CEO of Canopy Growth (TSX: WEED) (NASDAQ: CGC) and current Chairman of the Advisory Board at Red Light Holland Corp. (CNSX: TRIP) (OTCMKTS: TRUFF), Bruce Linton. Nearly three years after leaving his CEO role at Canopy, Bruce gives his views on where he sees the company today and some rarely heard-before post hoc commentary pertaining to the iconic $5 billion investment into Canopy Growth by Constellation Brands (NYSE: STZ). We also dive into the state on the U.S. cannabis market, elusive industry profitability and the psychedelic market.

Trade To Black Podcast Cliffsnotes:

Macro

@1:55 The Federal Reserve hiked interest rates by 75 basis points and some analysts believe the Fed Funds rate could head to 3.5% by year end. Bruce weighs-in on where it’s all going.

@3:38 Will Fed monetary policy be effective in a cost-push inflation environment as opposed to demand-push?

@5:45 Home prices in the GTA are down big over the past 5 months, but taken into perspective, are still up ~18% or so over the past 12 months.

Cannabis

@6:35 Canopy Growth has been struggling with stagnant revenues and the share price recently reached multi-year lows. Canadian cannabis LPs are also very far from profitability. Where did it all go wrong?

@10:04 Bruce is asked whether a part of him would still like to be running Canopy Growth.

@11:31 Did Canopy Growth change its vision after Bruce left the company, and were there extraneous reasons why they might have? Forward looking guidance discussed.

@13:40 Does Bruce keep in contact with associates from Constellation Brands?

@15:15 Canopy Growth and brand awareness.

@17:46 Bruce’s take on U.S. MSOs, health of the overall cannabis market and SAFE Banking.

@19:40 Bruce believes the “feds” are going to regulate cannabis in the U.S. in about 3 years. How would that look?

@22:48 Is the basic act of selling an agricultural commodity at the heart of why cannabis companies are struggling to become profitable? 280e is a big problem for MSOs.

@34:35 Bruce walks us through the day Canopy Growth made the iconic $5 billion deal with Constellation Brands.

@36:45 Was the Constellation deal Bruce’s biggest professional achievement?

@39:45 How did Bruce manage to keep the Canopy/Constellation deal so hush-hush?

Psychedelics

@25:20 Bruce comments on the poor market environment in the psychedelic industry. Red Light Holland was fortunate enough to raise money during the early boom.

@29:35 Red Light Holland CEO, Todd Shapiro, has grown as a leader over the past few months.

@30:53 Red Light Holland sells psilocybe truffles if legal jurisdictions such as The Netherlands. Is its differentiated business model something that can work and export successfully to other nations?

@32:50 RLH has a chance to thrive internationally.

To view our previous Trade To Black Podcast, click here.

The Dales Report Inc. disclosure policy applies to this post    
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