Peter Guo, enterprise risk services leader in BC for MNP, talks about Canada’s leadership in the cannabis market and the challenges it faces.
While Canada continues to hold a lead in innovation and development of the marijuana market, challenges abroad and inside the country could put that status in question, says accountant with firm MNP LLP.
The Investing News Network (INN) talked with Peter Guo, enterprise risk services leader in BC for MNP, at the Lift & Co. (TSXV:LIFT) cannabis expo in Vancouver.
Guo also told INN as the Canadian marketplace moves from the initial stage of legalization, investors have moved beyond some of the initial metrics used to evaluate licensed producers to now consider more options when investing in cannabis ventures.
“In the past we always talked about valuations and funded capacity, square footage and all that stuff that was purely on the cultivation,” he told INN. “Now it’s about can you execute, can you deliver, can you create and generate revenue on a consistent basis, can you manage your costs?”
Guo also represents MNP as the leader of cannabis services for the business accounting firm.
He also participated on a panel on the state of the international cannabis market and relations between Canadian firms and the emerging legal marijuana jurisdictions during the Lift & Co. Cannabis Business Conference.
In the panel, dubbed “International Deep Dive: Going Globe – Opportunities and Challenges,” Guo expressed frustration with the way Health Canada had gone about enforcing promotion and marketing rules for cannabis companies and legal recreational products at such a critical time.
Guo told INN if the regulations don’t recognize consumer behaviours in the evolving marijuana space, that could lead to a slow down in innovation from the overall Canadian standpoint.
“Don’t discount the fact the world is watching and the world is competing,” Guo said.
Relationship between Canadian and US marijuana markets
Guo highlighted how, in the US, companies aren’t able to move product state by state and must “start over” with entrance to new jurisdictions. Meanwhile, Canada doesn’t have those exact same restrictions he argued current policy could endanger the lead of Canada in the cannabis global scene.
He told the audience Canadian players needed to recognize the advantage thanks to the US market being slowed down by the lack of federal legalization.
Watch the interview above with Guo above for his full thoughts.
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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.