One question has been on everyone’s mind since news broke that Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) let go of co-founder Bruce Linton. That question is: where will Linton end up?
Linton is generally credited with making Canopy the biggest cannabis company in the world. In the past, Rich has called him “the CEO of the Century,” praising him for building Canopy’s shareholder equity and making critical decisions to position his company as an industry leader.
As perhaps the most recognizable name in the cannabis sector, Bruce Linton’s next move will have major consequences for whatever company is lucky enough to have him. While the man himself has made no specific overtures to any firm, speculation abounds.
Quoting liberally from an article in the Motley Fool, Rich discusses the leading theory as to where Linton will go.
First, Where Can He Not Go?
As reported by the Financial Post, Linton has a non-compete clause with Canopy that prohibits him from participating in the Canadian cannabis sector. Rich believes that this non-compete clause is in effect for at least two years, which is long enough to quell the fires currently surrounding him.
A cannabis celebrity and field-tested CEO like Linton being legally barred from joining Canadian cannabis corporations is, no doubt, disappointing news for some companies that could benefit from his leadership. CannTrust Holdings (TSX:TRST) (NYSE:CTST), Rich sneakily notes, could certainly put Linton’s experience to use. He could perhaps lead the company to stability following a period of stock market mayhem that resulted from CannTrust’s cultivation license controversy and the ensuing class-action lawsuits.
Of note, Bruce Linton has already discussed his involvement with Martello Technologies (TSXV:MTLO) (OTC:DRKOF), of which he is also co-founder. During the highly-publicized ousting from Canopy, Linton brandished a Martello T-shirt, which caused the small Ottawa-based tech company’s price to skyrocket and prompted Rich to call Martello his stock pick for the month of July.
However, there’s been no word as to how involved Linton will be with the company. Moreover, Martello is likely too small to keep Linton’s attention full time, and a titan of the cannabis industry like him will likely be returning to that world before too long.
But if he can’t take part in the Canadian cannabis sector, where can he go?
Bruce Linton’s Most Logical Landing Spot
“I believe that … Linton will take on an advisory or perhaps leadership role in the ancillary portion of the US cannabis industry,” Rich says, quoting the Motley Fool article. “The most logical landing spot for Linton would potentially involve companies that provide financing, consulting, or software services to the cannabis industry.”
Software is a logical pick, as it would allow Linton to synergize his stake in Martello with his efforts and experience in the cannabis sector. As for financing, Rich explains that this would be critical for a lot of US-based cannabis companies, as they often experience considerable difficulty accessing capital. Because weed is still illegal in the United States on the federal level, financial institutions can face monetary or even criminal charges for providing banking services to cannabis corporations.
However, Linton could use his keen knowledge of the sector to work with venture capital firms to help companies get access to financing.
One company that seems almost tailor-made for Linton is MariMed Inc (OTCQB:MRMD). The company has been seriously expanding its operations as of late, moving into both cannabis cultivation and production of CBD-derived products. Of note, MariMed has historically been involved in the consulting side of the cannabis sector, which could make it the perfect landing spot for Bruce Linton.
While everything discussed here is purely speculative, the facts certainly point to the south. Specifically, the growing cannabis market and the corporations looking to put an experienced mind like Linton’s to good use.
What do you think? Is this theory on point or way off? Let us know down below.
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