Canopy Growth CEO Bruce Linton Says Global Cannabis Domination is the Goal
*By Chloe Aiello*
Canopy Growth CEO Bruce Linton won't guarantee investors dividends. What he will promise is a stake in global cannabis domination.
"If people want a dividend, we are probably not the right stock. If they want some entity aimed at dominating a global opportunity that started in Canada, we are probably your best bet," Linton told Cheddar on Friday, one day after the company reported a massive spike in third-quarter revenue.
Beverages ー and other non-flower products ー are shaping up to be a major focus for Canopy as Canada gears up for [its second wave of cannabis legalization](https://cheddar.com/media/cheddars-crystal-ball-the-2019-outlook-for-cannabis-and-hemp), which will open the door for cannabis-infused goods like vapes, edibles and beverages by mid-October 2019.
"The biggest opportunity is to be planning a year from now not to be selling very much dried cannabis flower, compared to today," Linton said.
That applies both to medical cannabis, which can be sold as an insurable product, and higher-margin recreational goods, like edibles, which can sell for higher prices even with smaller quantities of cannabis.
"I think the margin growth could be faster and bigger because when you sell dried cannabis you are selling it at the least advanced state," Linton said. "I think you are going to see margin opportunities just keep going up as real products are created and put into markets of both medical and \[recreational\]."
Canopy Growth ($CGC) reported [third-quarter earnings](https://www.canopygrowth.com/wp-content/uploads/2019/02/Canopy-Growth-Reports-Third-Quarter-Fiscal-Year-2019-Financial-Results-1.pdf) late Thursday evening. The massive marijuana producer grew its revenue an astounding 282 percent year-over-year, but missed analyst estimates on earnings, reporting a C$0.38 loss. The company also announced that Chief Financial Officer Tim Saunders will leave the company this year. Shares were surging 4 percent on Friday.
Linton said he expects Canopy will be profitable at least in Canada by the end of the year, as the company begins to make use of investments it has made in extraction and production.
"What we've done is made really significant, thoughtful investments, all of which are near the finish line of being eligible to produce the cannabis, create the extraction platform, and make things like beverages," he said.
For full interview [click here](https://cheddar.com/videos/canopy-growth-ceo-talks-earnings).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
