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:
@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.
@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?
@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.