This Is Why Canopy Growth Corp. CEO Believes It Can Be World Leader in Pot
Canopy Growth Corp. (CVE:CGC, TSE:CGC) CEO Bruce Linton says that the volatility of the company’s stock is no reason to doubt its value. Linton told CBC in an interview:
Most of the world . . . recognizes [Canada has] the best policy,” Linton told CBC’s Peter Armstrong. “The first place on the planet we’re going to have true recreationally organized [cannabis] is Canada. There’s a lot of ‘when, if’ but there’s no question about how much value is going to be created.
(Source: “Pot stock volatility,” CBC, November 23, 2016.)
The CEO attributed Canopy Growth stock’s volatility to investors looking to short the stock following some of the rapid gains made by Canopy Growth Corp. Much of this growth is attributed to the votes on marijuana legalization in the United States on November 8, which saw eight states approve legalization of either recreational or medicinal marijuana.
The election was one of the main factors that pushed Canopy Growth to a $1.0-billion valuation. (Source: “Canopy Growth is Canada’s first ‘cannabis unicorn’ with $1 billion valuation,” Financial Post, November 11, 2016.)
Despite the marijuana legalization in several states, however, Linton said that the pot issue in the U.S. is still far from settled. He cited the fact that the U.S. federal laws in place still restrict marijuana sales as a major obstacle for American pot producers to overcome, which gives Canopy Growth and other Canadian companies a first shot at establishing themselves in the global market.
Linton mentioned that investors in New York could not invest in companies in California due to federal laws. That large pool of capital could make its way north, however, to Canopy Growth, which is already established on the Toronto Stock Exchange (TSE) in a country where pot legalization is meant to be coming down the pipe in the near future.