The company played the long game: It takes time for the Cannabis markets to scale, for products to be developed, for research to be done, and for nations to change.
However, Canopy could fail to deliver in the short term and meet the expectations of its investors, especially its multi-billion dollar remuneration .
"[Linton] is a loss of industry growth," says Richard M. Batenburg III, who leads investor relations to Cliintel Capital Management, a Denver-based institutional investment company focusing on cannabis. "You need a multi-trillion dollar CEO to handle this process."
Linton told CNN Wednesday that he had fallen in vain with the company's board, which now includes four directors installed by Constellation. Marketing Director Mark Zekulin, who is temporary CEO, will go down as the company assures a new CEO, a canopy spokeswoman told CNN Business.
Canopy lost $ 670 million and reported revenue of $ 226.3 million for the financial year. The losses ̵
"This is a long-standing industry," says Bethany Gomez, CEO of Brightfield Group, a Chicago-based company researching and analyzing the cannabis industry. "I think there are some revelations about the true viability and scalability of the Canadian market in general."
Canada registered 356 million. Kr. In cannabis sales from October 2018 to April 2019, according to data from Statistics Canada, the nation's statistical agency. These figures tend to be well below analysts and market research, some containing projections that Canada could have billions in recreational sales right out of the gate. Canada's roll-out was deliberately maintained. The government wanted to take a cautious and thought-provoking approach to the process, Gomez said and noted how the products were limited to smokable cannabis, seeds, plants and oils.
As such, Canada's recreational cannabis market does not resemble the adult -Under States on the other side of the southern border. Recreational cannabis stores in places like Colorado and California offer cannabis in various forms far beyond the usual "flower" or bud.
It will change later this year when Canada allows for more consumer goods – beverages, edibles and vaporized products – to be sold commercially where permitted. The canopy has invested heavily for the day that buys dollars and hours to create cannabis-infused drinks and chocolates and acquire companies with deep intellectual property and research portfolios.
Canopy has been more aggressive than his peers in acquiring other companies. It has also been more in the public eye thanks to Linton, an eccentric personality hyped over the potential of Canopy, said Gomez.
Linton's departure may not necessarily signal that Canopy Growth will change its approach, says Kris Inton, a Morningstar analyst covering Canopy Growth and other listed listed companies.
"In my opinion, that will probably not change their strategic direction," he said. "It won't change any of their options."
Wrigley expects to see traditional players like Constellation Brands continue to acquire and invest in cannabis companies, but with a more critical eye on management's background and economic and operational history.
"This in no way affects the potential of [cannabis]," Wrigley said. "This valuation business needs some recalibration."