Global Advisor EY Suggests Only a Handful of Canadian Cannabis Companies Will Thrive Post-Legalization

EY, a global leader in assurance, tax, transaction and advisory services, issued a 12-page report assessing the Canadian cannabis outlook, “How do you define your future in an
undefined market?”. The firm suggests that “only a handful of LPs are expected to thrive post-legalization”, pointing to the need of the LPs to accelerate their operations. Some of the areas of focus should be hiring, achieving differentiation, establishing risk-management procedures, creating brand awareness  and developing a sustainable cost structure.

The report, which cites an unclear regulatory environment and a potential near-term capacity shortage, includes survey results from various market participants regarding the focus of strategy, defining innovation, area of heaviest investment, industry consolidation and competition, customer interest in the future and the potential areas of biggest success post-legalization. It also includes an interview with Bruce Linton, CEO of Canopy Growth (TSX: WEED) (OTC: TWMJF), who describes most LPs as not interested in building long-term sustainable businesses.

Read the EY Report

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Published by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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