Canopy Growth CEO Expects US Soup Market to Open Eventually

The head of a large publicly traded company said that he was preparing for potential changes that would make his products available in America.

Cannabis is still illegal in the United States under federal law, although a number of states have legalized marijuana. But Bruce Linton, co-founder and CEO of Canopy growth (GSC)said Friday at the CNN channel Julia Chatterley at the First Move show that he thought some of the laws banning marijuana could soon be relaxed.

"Republicans have a long history of supporting state rights," Linton told Chatterley.

Linton said he thought federal regulators could decide that the pot is legal in states like California and Massachusetts that have already approved the sale and possession of small amounts of marijuana. They could leave in place a broader federal ban.

"If they did that, that would be good for me," said Linton.

The illegality of Pot has not prevented American companies from getting involved in the business.

Canopy Growth's shares have skyrocketed since Corona's owner, Constellation Brands, said last month that he was spending $ 4 billion to increase his stake in the company.

Constellation (STZ) Last year, she had invested for the first time in Canopy Growth, with the acquisition of 10% stake. The company increased its stake in Canopy last month to 38% and has the opportunity to acquire a majority stake of more than 50%. Both companies plan to develop cannabis-based beverages for countries where this is legal.

The canopy is one of the pot stocks that have been the subject of a tear in recent months. Tilray (TLRY) and Cronos (CRON) Both have jumped because investors are banking on a surge in sales as the legalization of recreational marijuana in Canada approaches.

Tiny actions New Age Drinks (NBEV), a fashionable drinks maker from Kombucha, has climbed more than 300% over the past five days – including an 80% pop on Thursday – after the company announced last month that it would be launching drinks. infused with CBD. CBD is a cannabidiol, a non-psychoactive component of cannabis.

same DavidsTea (DTEA) – a Montreal company – was caught in the frenzy of the pot. Shares jumped 12% Thursday speculating that it could play a role for the marijuana market.

But New Age Beverages, DavidsTea and Tilray plunged Friday as some investors feared the stock craze would be a bubble. Canopy and Cronos also took a shot on Friday.

However, large beverage companies – and even drug manufacturers – can invest in cannabis as a result of the Constellation-Canopy deal. This could mean that pot stocks have a better bet in the long run.

Tilray's CEO suggested on CNBC that cannabis was a protection for beverage manufacturers and pharmaceutical companies. Another Canadian soup company, Aurora Cannabis (ACBFF), jumped this week on speculation that he could make a deal with Coca Cola (KO).

Linton de Canopy agreed that major drug companies and beverage producers should have a cannabis strategy. He argued that these industries can not ignore the pot, and Constellation is ahead of the curve.

But he warned that the United States is still "a no-fly zone" for the sale of marijuana as long as it remains illegal at the federal level.

CNNMoney (New York) First published on September 21, 2018: 11:33 ET