Narbe Alexandrian, Canopy Rivers: It's Too Early for Cannabis Market to Look at Profitability

TL;DR

The CEO of Canopy Rivers discusses the different waves of growth in the cannabis industry and advises investors to focus on results rather than hype.

Transcript

for the investing news network I am Brian McGovern here at the MJ biscone international in Toronto with Navi Alexandrian the CEO of canopy rivers Narva thank you so much for your time today pleasure being here narva you just finished your panel talking a little bit about a global overview in the cannabis space can you talk a little bit in terms of ... Read More

Key Insights

• 👋 The cannabis industry is evolving through different waves of growth, with each wave offering different investment opportunities.
• 😑 The market is shifting towards valuing actual results rather than hype-driven press releases.
• 🏛️ Profitability should not be the sole focus at this stage, as companies should prioritize building assets and capturing market share.
• 🌐 Metrics such as global leadership potential and the ability to adapt to market changes should be considered by investors.
• ✋ Canopy Rivers has high expectations for its investment in TerrAscend, viewing it as a potential top player in the US multi-state operator market.
• 🌱 The CEO emphasizes the importance of having a plan to pivot towards profitability if needed, especially in times of economic downturn.
• 🤩 Ancillary tech companies, consumer packaged goods, and pharma are key sectors to watch in the cannabis industry.

Questions & Answers

Q: What are the different waves of growth in the cannabis industry?

The waves of growth in the cannabis industry include cultivation and extraction companies, ancillary tech companies, consumer packaged goods, pharma, and eventually mass market dominance.

Q: How has the market shifted from hype-driven investments to a focus on results?

The market now values actual results instead of hyped press releases. Investors are more interested in companies that can demonstrate profitability or the potential for it in the future.

Q: Does profitability matter at this early stage of the cannabis industry?

The CEO believes that building market share and assets should take precedence over profitability in the early stages. However, companies should have a plan in place to pivot towards profitability if necessary.

Q: What are the metrics investors should prioritize beyond profits?

Investors should consider a company's potential for global leadership and its ability to adapt and pivot in changing market conditions. Other metrics could include market share, brand strength, and strategic acquisitions.

Summary & Key Takeaways

• The cannabis industry is experiencing different waves of growth, starting with cultivation and extraction companies, followed by ancillary tech companies. Consumer packaged goods and pharma are the next waves, with mass market dominance expected in the future.

• The market is shifting from hype-driven investments to a focus on results and profitability. However, the CEO believes it is still early to prioritize profitability and encourages companies to build assets and capture market share.

• Investors should pay attention to metrics beyond profits, such as the potential for global leadership and the ability to pivot towards profitability if needed.

• Canopy Rivers has high hopes for its investment in TerrAscend, expecting it to become one of the top multi-state operators in the US cannabis market.