As day two of the MoneyShow conference in Toronto reached its midpoint, expert panelists gave investors their input on the future of the Canadian marijuana market.

The panel consisted of Cam Battley, chief corporate officer at Aurora Cannabis (TSX:ACB); Danny Brody, vice president of investor relations at Green Organic Dutchman Holdings (TSX:TGOD); Mark Noble, senior vice president and head of sales strategy at Horizons ETFs; and Chris Wagner, CEO at Emerald Health Therapeutics (TSXV:EMH).

Moderated by Jay Rosenthal, co-founder and president of Business of Cannabis, the discussion started out with a question about whether Canada’s impending October 17 recreational cannabis legalization date will be a legitimate game changer, or merely a milestone.

Wagner said that depending on which side of the industry you’re on, it will likely be both.

“It’s not the dawn of a new era for Canadians socially and for our society … but it’s probably the dawn of a new era corporately and for Canadian companies,” he said.

“We will all remember this time as a time when large, dominant Canadian firms in this space started, and we have such a huge head start over anybody else on the planet that this will be remembered as the start of a brand-new industry that will be, and already is, global and that Canadians are leading.”

Rosenthal asked the panelists to describe their perception on the timeline for the industry as it relates to investors. Comparing it to tech updates, the participants were asked to answer whether legalization represents version 1.0 or 2.0.

Wagner said he believes the market is at version 0.01, saying it “[isn’t] even the first chapter.”

Battley said Canada’s upcoming legalization will provide a major window of opportunity for Canadian companies to become prominent on a global scale.

“It’s going to be a multibillion-dollar business in Canada. That’s great, but that’s not a global industry, that doesn’t get us into the realm of brewers and distillers,” he said.

Battley told the audience a change in US policy could happen quickly. “When that happens, there will be large, well-capitalized US competitors.”

Canadian producers such as Aphria (TSX:APH) and Cronos Group (TSX:CRON) have disclosed intentions to move into the US market once the drug becomes legal on the federal level.

“We have that window of opportunity to establish our global infrastructure and the networks and the distribution and the local production, all the things that we need, and we [have to] do it fast, because that’s the major economic opportunity.”

The Aurora executive finished his point by saying that companies at the forefront of global expansion are the ones most likely to maintain their market stance and stay relevant in the coming years.

“If you’re looking out three, five years and you want to see which companies are going to be around, look for the companies that are able to establish their global presence and succeed in selling into multiple global markets,” Battley said. “Those ones will be the ones that survive and thrive.”

Cannabis experts comment on infused product craze

The discussion then moved to the question of how each panelist’s company will be preparing for Canada’s additional shift to cannabis-infused food and drink products, set to be legalized separately sometime after October 17.

Noble took the opportunity to highlight how broad the cannabis market stands to become in the coming years, saying diversification is an essential component to success, both for investors and companies.

“When this becomes a consumer-driven industry, on both the medical and the recreational side, things like marketing, brand, product, features are all going to come into play,” he said. “Diversification is your friend here.”

Noble explained the time is closing for companies with exorbitant valuations to sell promises and instead deliver results.

“I think that going into the new year, companies that are trading at above $10 billion on less than $50 million in revenue, that’s a disappointment waiting to happen,” Noble said.

The Horizons executive told the investor audience he expects some smaller companies to do well overall, and for some of the bigger cannabis ventures to become “extremely disappointing” on valuations.

He ended by explaining that putting all your eggs in one basket can be detrimental in the cannabis sector, and said that diversifying amongst companies that are strong brand leaders, acquisition targets or globally expanding will be an investor’s golden goose to “capture that full growth.”

One of the final questions was what the panelists consider the “sleeper stories” of the sector that will come to light in the next year. While Battley and Wagner both discussed hemp, Brody showed his enthusiasm for the medical market to further expand with legal research and development.

“I think that’s going to be a huge market,” he said.

Don’t forget to follow us @INN_Cannabis for real-time news updates and stay tuned for cannabis stories from the MoneyShow!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) will release its financial results for the third quarter fiscal 2021 ended December 31, 2020 before financial markets open on February 9, 2021.

Keep reading... Show less


Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced bought deal public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$137,940,000 . The Company sold 13,200,000 Units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Keep reading... Show less

Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced bought deal public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$137,940,000. The Company sold 13,200,000 Units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of US$12.60 per Warrant Share, subject to adjustment in certain events.

Keep reading... Show less

AMP German Cannabis Group Inc. (” AMP “) (CSE: XCX ), ( Frankfurt : C4T ) (ISIN: CA00176G1028) and Aphria Inc.’s (” Aphria “) (TSX: APHA ) (NASDAQ: APHA) wholly-owned German subsidiary, CC Pharma GmbH (” CC Pharma “), have entered into a strategic agreement (the ” Co-Promotion Agreement “) covering joint marketing of sales for Aphria brand medical cannabis products for the German market.

The Co-Promotion Agreement is a collaboration contract between AMP and CC Pharma to sell the Aphria medical cannabis brand in Germany . In addition, AMP will organize with the support of CC Pharma, “information events” in Germany to market Aphria branded products to doctors and pharmacists.

Keep reading... Show less

HempFusion Wellness Inc. ( TSX:CBD.U ) ( FWB:8OO ) (“ HempFusion ” or the “ Company ”) is pleased to announce that it has been included in two leading cannabis & hemp-derived CBD focused exchange-traded funds (“ ETFs ”), AdvisorShares Pure US Cannabis ETF ( NYSE:MSOS ) and AdvisorShares Pure Cannabis ETF ( NYSE:YOLO ).

AdvisorShares is a leading sponsor of actively managed ETFs. Pure US Cannabis ETF (MSOS) is the only US-listed ETF dedicated solely to US cannabis exposure, with over US$616,000,000 in assets under management (“ AUM ”). Pure Cannabis ETF (YOLO) was the first US-based actively managed ETF focused on the global cannabis industry. YOLO and MSOS endeavor to achieve long-term capital growth by investing in some of the largest foreign and domestic cannabis and hemp-derived CBD companies. The two AdvisorShares ETFs have a combined AUM of over US$880,000,000 as of January 22, 2021.

Keep reading... Show less