Preparing for the next breakthrough in cannabis in 24 months

The $ 3.4 billion merger of Canopy Growth with Acreage Holdings will give the joint venture a boost among the legalization of marijuana across America, CNBC chief executive said Thursday. Bruce Linton.

On Friday, the Food and Drug Administration is scheduled to hold a hearing on cannabidiol, the non-intoxicant compound found in hemp, to regulate the product, which could become a $ 22 billion industry within three years.

Canadian cannabis companies have merged to share activities, brands and intellectual property with the goal of dominating the dispensary industry in 20 states and future markets, said Linton. He expects a breakthrough in the next 18 to 24 months.

"It's just enough time to use all of our IP and our brands to really progress," said Linton in an interview with Jim Cramer of "Mad Money." "The next wave is coming and we are well ahead."

An illegal and clandestine activity that for decades has led to the incarceration of resellers and users, marijuana has been legalized in one form or another in more than half of the US states and the federal district. of Columbia. Acreage has appealed to recognizable leaders on its board, such as former House of Republicans chairman John Boehner and former Mbadachusetts Republican governor Bill Weld.

The culture, processing and distribution company has been able to attract leading personalities partly because CBD can be used as an alternative to opioids and as a majority of Americans support legalization, said Kevin Murphy, CEO of Acreage, who had joined Linton at the session.

The acquisition of Acreage by Canopy will come into effect once the cannabis has been legalized by the federal government. Illinois may well be the next state to legalize the recreational use of marijuana. Lawmakers in New Jersey, New York, Connecticut and New Hampshire are also debating the subject.

"These people have joined our organization because they believe in the movement, in the value of the factory, but they also believe in good governance, otherwise they would not have joined our society," he said. said Murphy.

People like Boehner and Weld will be helpful in getting big brands to join Canopy as states continue to relax cannabis laws, Linton said. The industry is becoming more and more popular as social consumption increases, and companies are considering new products in their catalog, including sprays, sweets and other products. food, he said.

Businesses are "pensive" because marijuana is still illegal at the federal level, but they will seek to work with dominant players in the field, Murphy said.

"They want to come in, they all have a committee, they want to go into the right company, but they can not look stupid," Linton said. "These guys (like Boehner and Weld) help keep you stupid."

Canopy shares slid about 0.7% Thursday. The stock has grown nearly 57% this year and more than 46% in the last 12 months.