TORONTO — Canopy Growth’s chief executive talked more aggressively Thursday about the potential for U.S. expansion when and if marijuana becomes federally legal south of the border — one day after the licensed medical marijuana producer got a $5-billion infusion of cash — and believes that even under a Trump government that day will dawn sooner than anticipated.
In explaining his bullish outlook, Bruce Linton pointed to a U.S. Senate bill introduced in June that would amend the Controlled Substances Act to exempt marijuana activity that is legal at the state level, as well as to recent comments backing states’ rights on pot from the Koch brothers, prominent Republican donors and businessmen.
“I will not go in until its federally legal, at all. But what I’m observing from a distance, are indications that it may in fact become federally legal sooner than later…. State rights have typically been associated with the Republican party,” he said on the sidelines of Marijuana Business Daily’s industry conference in Toronto on Thursday.
His comments come after the Smiths Falls,Ont.-based licensed producer announced an additional $5-billion investment from Constellation Brands, which increases the U.S.-based alcohol brand giant’s stake in Canopy to 38 per cent.
Linton’s optimistic outlook is a departure from his prior cautious stance when discussing the U.S. — where the drug is legalized in several states for medical and recreational use but remains an illegal substance at the federal level.
Although the U.S. president’s top law enforcement official earlier this year rescinded an Obama-era memo that suggested that the federal government would not intervene in states where the cannabis was legal, Donald Trump in June signalled that he would “probably” support the amendment bill, which is being reviewed by a Senate committee and is known as the STATES act.
Canopy has lined up an option to acquire a “humongous” greenhouse in California as part of a broader strategy to enter the U.S. market quickly, Linton said during a question-and-answer session onstage at the industry conference.
Linton added that the company will focus on key consumer markets such as Florida, Texas and California — and not necessarily the states where cannabis is currently legal.
“Where does most of the beer get sold, where does most of the wine get sold?” he said.
Linton has said the $5 billion in capital will be used to fuel Canopy’s accelerated global growth as it gears up to fend off competition from big pharma, big tobacco, consumer packaged goods companies and alcohol firms making forays into the pot space.