New leadership in the Canadian cannabis industry is paving the way for changing tides in the space, according to one expert market watcher.
The Investing News Network (INN) had the chance to catch up with Monica Chadha, EY Canada’s national cannabis leader, to discuss the current cannabis landscape in Canada.
EY’s cannabis team is intricately attached to the Canadian sector, serving as a business advisor that engages with the players in the market and follows the steps taken by the entire cannabis ecosystem.
Chadha said Canadian marijuana companies are moving forward with themes of globalization as the worldwide cannabis play continues to expand.
“With the … changing of the guard and getting new executive leadership teams in, it’s certainly inviting individuals into the organization who do have that global experience and who can run a public multinational organization as international expansion occurs,” the EY researcher told INN.
While 2019 offered the first round of rotations for the Canadian cannabis market at large, the trend has continued into 2020; recently Aurora Cannabis (NYSE:ACB,TSX:ACB) joined Aphria (NASDAQ:APHA,TSX:APHA) and Canopy Growth (NYSE:CGC,TSX:WEED) in confirming a new CEO.
Near the end of 2019, following a dip in sentiment surrounding the Canadian market, Chadha wrote that in 2018, EY had done EBITDA projections for the 25 largest companies trading on Canadian exchanges. The reality eventually fell short of the projections made by EY.
When asked about the growth of brands and brand appeal with Canadian consumers, Chadha confirmed what the data has been showing: Cannabis brands in Canada have not made a significant impact yet.
“A lot of the branding and brands that percolate up to the top in terms of SKUs that gain popularity amongst consumers, it really is at this particular day and age through social media or through direct or indirect lines of communication happening in the general populous,” the EY expert said. “I think that’s what you can expect to see in the near term. It really is just based on what they’re hearing through these public forums, but less so through direct forums of what could be perceived as marketing or advertising.”
Branding in the country has faced multiple challenges given the tight regulations on promoting products and experiences related to the drug. In fact, a survey conducted this past summer found that Canadian consumers are largely ignoring branding efforts. In total, no brand was found to have recognition of over 41 percent among the 3,000 Canadian consumers surveyed.
“When product options increase and brand awareness remains low, consumers get confused. They can get decision fatigue when they do not see a product that aligns with their complex purchasing decisions,” the Brightfield Group explained in its findings. “This has led to a significant gap between consumers aware of Canadian brands and those that report purchasing them.”
Watch the video above to hear all of the comments from Chadha. And click here if you want to check out a conversation between two fund managers about the state of cannabis investments.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
ROSEN, LEADING INVESTOR COUNSEL, Reminds Aurora Cannabis Inc. Investors of Important December 1 Deadline in Securities Class Action; Encourages Investors with Losses in Excess of $100K to Contact Firm – ACB
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Aurora Cannabis Inc. (NYSE: ACB) between February 13, 2020 and September 4, 2020, inclusive (the “Class Period”), of the important December 1, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Aurora investors under the federal securities laws.
To join the Aurora class action, go to http://www.rosenlegal.com/cases-register-1965.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email firstname.lastname@example.org or email@example.com for information on the class action.
HempFusion Wellness Inc. Files Preliminary Prospectus for Initial Public Offering of Common Shares and Units
HempFusion Wellness Inc. (“HempFusion”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that it has filed a preliminary prospectus (the “Preliminary Prospectus”) with the securities regulatory authorities in each of the provinces of Canada, except Quebec, for a proposed initial public offering of (i) common shares of the Company (the “Offered Shares”) for gross proceeds of up to USD$7,000,000 (the “Share Offering”) and (ii) units of the Company (the “Units”) for gross proceeds of up to USD$10,000,000 (the “Unit Offering” and together with the Share Offering, the “Offering”). The offering price of the Offered Shares and the Units (the “Offering Price”) will be determined in the context of the market and is anticipated to be between USD$0.90 and USD$1.35 (the “Offering Price”) per Offered Share and per Unit, respectively.
“We are incredibly excited to announce our initial public offering and HempFusion’s intention to list its securities on the Toronto Stock Exchange. To be the first US-based CBD company to apply to list on the TSX is a tremendous honour,” stated HempFusion’s CEO, Dr. Jason Mitchell N.D. “Completion of this proposed initial public offering will accelerate our ability to scale HempFusion’s operations both domestically and internationally, drive accelerated growth within all our distribution channels, and significantly expand our marketing initiatives,” continued Mitchell.
Trading resumes in:
Company: Harvest Health & Recreation Inc.
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Harvest Health & Recreation Inc. (“Harvest” or the “Company”) ( CSE: HARV ), a vertically integrated cannabis company and multi-state operator in the U.S., is pleased to announce that is has entered into an amended agreement with Eight Capital, pursuant to which Eight Capital, together with Canaccord Genuity Corp., as co-lead underwriters and joint bookrunners, together with a syndicate of underwriters (collectively, the “ Underwriters ”), will now purchase on a “bought deal” basis 17,699,200 units of the Company (“the Units ”) at a price of $2.26 per Unit (the “ Offering Price ) for aggregate gross proceeds to Harvest of $40,000,192 (the “ Offering ”). (All figures are in Canadian dollars unless otherwise stated.)
Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to announce that both Pura Vida and Purefarma tinctures will be available for purchase next week in the province of British Columbia through the province’s authorized Liquor Distribution Branch (“LDB”) channels.
BC Customers will soon be able to purchase Pura Vida Daybreak and Nightfall tinctures as well as Purefarma HLX30 CBD and Balance 15:15. Heritage launched both Pura Vida and Purefarma vape cartridges in September 2020 and the response by customers has been tremendous in the two provinces in which they are available British Columbia and Manitoba.