BNN - CEO: Why I'm OK with losing money right now

Smart move in my opinion.

Why sit on a pile of money just to show that you are cash-flow positive?, when you can re-invest in your business and show your shareholders that the company is using its funds towards reaching new heights, new goals and when L-Day (legalization day) comes;
Their name will be on the TOP of all dispensary/pharmacy shelves and it will be the brand people will go to.

Bruce said it during the financials conference call; "we can be cash-flow positive TODAY if we wanted to".

I found it interesting that CCC (Canadian Cannabis Clinics) almost made it their duty to keep clients from signing up with Tweed - that was my experience anyways. Now after seeing Mettrum's growing numbers, Aurora's speedy growth as well.. can't help but wonder.

Is CGC spreading themselves too thin? Trying to bite off more than they can chew and are paying the price by having their reputation hurt?

Seeing all the LP's numbers over the next few Q's is really going to show a LOT in my opinion.

Great board Medman!!!!!!!!!!!

PS. Where's Brent?

Notes from CEO Linton 6/28 interview video on BNN:
www.bnn.ca/Video/player.aspx?vid=900671

- Brazil currently has very strict regulations around medical marijuana (research and access);

- JV partner has university and other ties;

- Intellectual property (results of research) will be Canopy’s to exploit – research costs comparatively low in Brazil, Canopy can sell to rest of world;

- Low-overhead cost with potential high-yield result for Canopy;

- Entry cost in low hundred-thousands, Linton envisions >$10MM value in near future of which Canopy owns ~50%, plus IP commercialization benefit;

- Canopy’s goal at this stage is continue to maintain and grow market share, yet believes Canopy will be cash-flow positive this fiscal year;

- Several times throughout the interview Linton reiterates that market share matters more than earnings per share at this time;

- Sales & marketing costs include pharma reps visiting doctors (~20K visits), which will impact future market share;

- Although the price per gram of marijuana has been decreasing, Canopy’s production costs have been decreasing faster;

- Higher margin products such as soda will hopefully enable Canopy to sell at higher price per gram in future (following recreational legalization and of course contingent on what products will be allowed to be produced and sold under the new laws);

- Linton sees recreational distribution occurring through provincially-controlled liquor stores and medical perhaps via pharmacies;

- Critical of how legalization has played out in the US – Cash-only makes it difficult to control as does the proliferation of many small producers and points of purchase, which means more pesticides and other undesirable contaminants more likely to enter the system vs. Canada’s approach of licensing a limited number or large producers.

One thing is for certain, a lot of people have no understanding of the industry etc as this copy and paste below shows from a review site and there are countless similar ones. The Whitby CCC from what I have told seems to recommend Mettrum and Tweed equally but of course it is up the patient ultimately.

" ... I had a prescription from a family doctor that did not limit my thc content or the strains I could use. My prescription expired after a year and the doctor I was seeing retired. A new doctor sent me to Canadian Cannabis Clinics. I was extremely disappointed to say the least. Canadian Cannabis Clinics are weed pimps, nothing more. The doctor that saw me via webcam was young and he would not listen to me, and the answers he gave me seemed scripted. He pushed oils and edibles and limited my thc so low that the company I was using (Broken Coast) does not have those kinds of strains. At the end of the webcam interview with the doctor, I had to go see "the onsite counsellor will advise you about cannabis use, and assist with strain selection and registration with the best matched LP." I told her I wanted to set up my prescription with Broken Coast, but she wasn't able to. She too started pushing oils and told me her favorite producer was Tweed.

Canadian Cannabis Clinics are weed pimps funded by the major cannabis producers in Canada. These companies are owned by major pharma companies with shareholders. They are not interested in your health, they are there to promote their industry. They do not have the authority to limit your thc, or the methods of consumption, or the strains you chose to use, but that is exactly what they are doing. It's a scam and I left the office extremely disappointed and very frustrated with the entire process...."