World’s top cannabis CEO chimes in on the market, says don’t sell shares yet

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Canopy Growth

Bruce Linton, former Co-CEO of Canopy Growth Corp (NYSE: CGC), was fired after providing less than expected financial results for the company during its first quarter in 2019.

However, he still is considered to be one of the top experts in the industry and was invited as the keynote speaker at the National Cannabis Industry association’s Cannabis Business Summit. Speaking in front of a crowd, Linton went on to chime in on the state of the cannabis industry.

He went on to mention a number of things marijuana companies should consider going forward. For one, Linton argued that cannabis businesses need to double down and expand in economically distressed towns and areas that are needing injections of capital and jobs, something that the cannabis industry provides.



While some disagree with this approach since an economically distressed area wouldn’t have as much disposable capital to spend on cannabis, Linton suggests that these areas would be more business-friendly due to their situation, might end up rivaling urban areas in terms of potential future income.

On the topic of CBD-beverages and the upcoming second wave of cannabis legalization in Canada, Linton went on to say that he hasn’t sold any of his marijuana stocks yet.

Despite the tumble many companies have experienced over the past couple of months, the former CEO argues that as new entrants to the cannabis sector, mainly alcohol and beverage giants such as Constellation Brands but others as well, will likely turnaround stock prices in the coming months and especially once October comes around with the new Canadian legislation.

In the U.S., the current lack of federal marijuana reforms will continue to set back the American cannabis industry, and the recent Senate hearing alongside the FDA’s hesitation to reclassify CBD from a drug to a food ingredient will end up hampering growth.

In this environment, multi-state operators won’t necessarily see as much growth as single state operators, says Linton, and warned investors that profitability isn’t necessarily linked to a company’s size or footprint.

As for international markets, Linton predicts that Europe will become the next most exciting market for the industry due in no small part to the socialized medical programs already in place in Europe.

Since his departure from Canopy Growth, the marijuana giant has continued to fall, declining by over 30 percent over the past three months. This has been a surprising turnaround for a company that many figured would have no trouble succeeding due to its size and prominence in the sector.

Canopy ended up migrating some of its medical cannabis business to its recreational segment, which could have partially contributed to their decline in revenues. Time will tell if the company stages a comeback, but if it does, Canopy won’t be again with the same excitement and veneer as it once did.

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