Edibles sales in the Canadian market will not start until 2020, at least according to an executive at a marijuana-producing company.
During the Lift & Co. (TSXV:LIFT,OTCQB:LFCOF) Cannabis Business Conference (LCBC), the Investing News Network had the chance to catch up with Peter Aceto, CEO of CannTrust Holdings (NYSE:CTST,TSX:TRST), to talk about the company’s path and the upcoming edibles market in Canada.
Aceto explained that the current barrier to entry for many consumers looking into cannabis products is the smokeable aspect of the current legal offerings in Canada.
“My guess is probably the first Canadian will not purchase their first edible product legally in 2019,” Aceto said.
Aceto participated in a panel at the LCBC during which Vivien Azer, managing director for consumer research in the beverages, cannabis and tobacco markets for Cowen (NASDAQ:COWN), predicted that edibles will not be available for sale in 2019.
“We will have some new form factors as soon as they’re legal and lawful and we’re working on a variety of other verticals as well,” Aceto said.
CannTrust reached the New York Stock Exchange (NYSE) in February. Aceto said this premier listing has allowed the company to meet with institutional investors who previously did not have access to the company’s shares.
“They see a much bigger valuation opportunity in the US, so I think Canadian capital is looking that way,” Aceto said.
However, he added that institutions and global investors who are just now entering the marijuana market have a big impetus for the established market of companies with senior US listings.
While Aceto spoke during a panel at the event, he was also there to announce the firm’s new social investment campaign, dubbed the We Care program. For it, CannTrust will partner with the Canadian Alliance to End Homelessness, Project SHARE and Hospice Niagara.
The company explained that this is part of a platform aimed at helping local causes and said that it will be based on four identities: lifting people out of poverty, health and wellness, safe consumption and sustainability.
“I’ve always wanted to work with companies that balance all of their stakeholders. Yes, we have to make money and that is very, very important, that’s why we’re here. But we have to help our employees, we have to be good citizens in the community that we live (in) and where we work,” Aceto said.
In total, as part of the first group of social causes, the company will donate C$75,000 this year, with a planned C$25,000 annually for the next three years for the Hospice Niagara organization.
For more on what Aceto had to say, watch the interview above. You can also click here to see our full Lift & Co. Cannabis Expo playlist on YouTube.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.