Specialist
Former Corporate Development Executive at Tilray Inc
Agenda
- Trends and developments in the cannabis industry
- Canadian LP (licensed producer) competitive landscape
- US cannabis market entry challenges, opportunities and implied investments
- Potential near-to-medium-term industry consolidation and outlook for Constellation Brands’ (NYSE: STZ) stake in Canopy Growth (NYSE: CGC)
Questions
1.
What are your thoughts on the North American cannabis industry’s regulatory landscape?
2.
Are there still any significant hurdles that need overcoming that may potentially open the floodgates to broader adoption in Canada, considering how nascent the industry is? You mentioned pricing, which will be a consideration in driving from the illicit to the legal market.
3.
Could you contrast Canada with the US market?
4.
What are your thoughts on the US’s federal marijuana decriminalisation efforts, including Senate Majority Leader Chuck Schumer’s Cannabis Administration and Opportunity Act, which was recently quoted as being supported by Amazon? Why would companies such as Amazon get behind this? What’s in it for them?
5.
What catalysts would inform your outlook for when federal legalisation is likely to occur?
6.
You seem to believe the passing of the US SAFE [Secure and Fair Enforcement] Banking Act would potentially quell many compliance departments’ concerns around having their financial institution involved in the industry and even the exchanges. Do you think that would be the case, even though they’d also need to potentially significantly invest in know-your-customer enforcement? Some believe that know-your-customer enforcement would be too taxing and that it would cost banks more than it would benefit them. How do you respond to that?
7.
Would the US SAFE Banking Act passing provide more upside to larger lenders or would it also open up the opportunity for smaller, state-chartered banks?
8.
What should we fundamentally understand about LPs [licensed producers], MSOs [multi-state operators] and their industry roles? Who are the leading MSOs?
9.
Which Canadian players could venture into the US market? We’ve heard recently of players seeking investments in the US. How might these players tap into the US market once it is legally permissible? How might US players expand their footprints?
10.
What is your take on Constellation Brands’ foray into the market? The company has some interest in Canopy Growth. What’s your outlook for Constellation Brands and how it’s approaching the industry?
11.
What are your thoughts on potential reports of legal cannabis oversupply in Canada? What might be causing that besides just high pricing?
12.
What key metrics or KPIs should public investors track closely in this market?
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