The U.S. Cannabis Strategy No One’s Talking About: Inside Canopy’s $300M Plan
Canopy Growth Corporation‘s (NASDAQ:CGC) strategy for capturing the U.S. cannabis market was the focal point of a recent fireside chat hosted by Zuanic & Associates. CEO David Klein and CFO Judy Hong provided insights into Canopy USA’s (CUSA) growth strategy, financial projections and its significance for investors navigating the evolving cannabis industry.
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Unique Structure For U.S. Expansion
CUSA’s innovative structure is designed to comply with NASDAQ and SEC regulations while preparing for potential federal cannabis reform. “The structure allows us to keep Canopy Growth compliant while positioning CUSA to grow independently in the U.S.,” Klein said.
This arrangement prevents Canopy Growth from directly financing CUSA but allows for co-investments alongside third-party investors when necessary. Additionally, Canopy Growth holds a beneficial interest in CUSA through exchangeable shares, which can be converted into voting shares once regulatory conditions permit.
Hong revealed CUSA’s long-term potential, noting it could generate up to $300 million in revenue annually with EBITDA margins of approximately 20%. She emphasized the …