Capital 10x got to talk with the man, the myth, the legend himself for a chat at the Benzinga Cannabis Capital conference in Chicago. Bruce Linton was essentially the industry’s #1 cheerleader and the architect of the meteoric growth in capital and stock prices from 2015 to late 2018.
Though he has moved on from his baby, Canopy Growth (NYSE: CGC, TSE: WEED), Linton is not a man who stands still. He still has strong opinions on how the industry can move the world forward on cannabis legalization while profiting at the same time.
In this video we hear from him on which health and wellness investing trends he is playing next and why he chose his most recent partners.
Linton also talks a bit about his next project MindMed and the expected timeline for a public listing.
Transcript – Interview With Bruce Linton
Capital 10X: Before we dive into the whole cannabis side of things obviously we have to ask you what T-shirt are you wearing today.
Bruce Linton: Today’s shirt (shows Mindmed T-shirt). I’ve invested in a handful of companies and I tried to think about themes and then find good companies on themes and this one met the criteria. So what they’re doing is essentially they’re looking at things have been governed by prohibition which haven’t had appropriate scientific endeavours and we’ve raised a good chunk of money and we’re looking at another 75 total to actually do clinical trials to show combinations of things like altered ibogaine as a way to actually get people off of opioids.
We’re looking at dosage delivery mechanisms so that micro dosing is truly micro and then you know what it is is just say if you’ve been treated poorly as an ingredient but you
do in fact have an effect on the human mental state. Can we manage that and can we turn it into medicine.
Capital 10X: So how is this company progressing so far obviously a lot of hurdles to move through?
Bruce Linton: So what it is an amalgam of several pieces they’ve been working at for five or six years but they needed a home which had cash so that’s what we created. The reason I wore it today is yesterday we had an election and you know the Liberals are still in charge, just a little less in charge, but my message on the media last night and today has been, great we checked the box, we got Canadian adult access done we’re not doing a great job as a country promoting our methodology of governance around the world. We should and then we should take the same logic of ending prohibition and enduring sort of the process of science and I’m not saying this has any kind of party effect isn’t had to be a therapeutic application and push the markets.
Capital 10X: Is there any any timelines you think on on public IPO or something like that?
Bruce Linton: I think this one may list as soon as this fall. We’ve been raising money and we’ve been picking bankers and we’ve been pushing and the reason is there’s a method by which you can list which is essentially step into an existing shell. With this one we’re gonna use quite a lot of money and we’re gonna try and put a bunch of IP down that once you have IP in
I don’t care if it’s your delivery mechanism its combination of ingredients clinical trial results this is again a chunk of time we’re moving fast and first will help.
Capital 10X: Absolutely. You saw that with Canopy as well. Right now obviously Canadian markets are struggling a little bit.
Bruce Linton: I think global markets.
Capital 10X: Sure yeah. Last struggle I think you came in with a big Constellation investment and really set the industry on fire. What’s it gonna take this time to turn things around?
Bruce Linton: Good memory because I think when we did that August one everybody was down and essentially we’re re-rated it up 2 to 3 X. What will happen again I don’t know what is gonna
happen in U.S. election. Who’s gonna take what positions at a federal level, medical and or rec
Capital 10X: So you see federal legalization as the biggest catalyst?
Bruce Linton: I think state rights is fine. I don’t think they have to federally legalize I think they have to federally acknowledge. So I think that would rerate it. I think maybe some of these companies doing scientific endeavours that are gonna actually have clinical results. Reading out dosage and delivering mechanisms for results if it works there’s gonna be a bunch of people said see I told you and I want that.
I think you’re gonna see other pharma companies come into the space when those results you just described to happen and/or continue to think geriatric care environments are mega pill markets. If you’re a pharmacy company the reason you make tons of money is you go see grandma and grandpa they have a little tray right it has like today’s Tuesday and here’s six pills they take over the course of a day.
That’s a lot of money. Now if that became cannabis there’s gonna be pharmaceutical companies that say I’m now in that space. And that’s going to be a big catalyst.
Capital 10X: You’ve associated yourself with a few new companies I’m not sure exactly the degree of involvement.
Bruce Linton: I’m an executive chairman of one in Michigan called Gage. Michigan is gonna be a very interesting market starting January. These guys have a very strong platform.
I’m involved with a brand house called Slang
. Increasingly people just want get rid of the bullshit, give me the product and I want to know that it’s at least consistent. I want to know that it fits into a form factor I trust so Slang’s got that.
DNA is a private company they’ve done a great job of genetics and growing and I like them.
I’m very active with a company called the Bttr Choice. It’s basically a currently good revenue margin dog care products company which we’re gonna direct to consumer but then we going to overlay a bunch of research and acquisitions, ready to CBD
real dosage. So I continue to think that you have to have in that sector trusted customers already who want better answers for their dogs. That’s what they have.
Capital 10X: Yeah my dog at home takes CBD because of health issues. It helped.
Bruce Linton: Wouldn’t you love to know the exact dosage. Wouldn’t you love to know time of day for application. Maybe there’s a couple other ingredients you want with it and the next thing you know you’re at a level where you become evangelical because you’ve got this information an outcome source that you trust. I think BTTR Choice is gonna be that.
Capital 10X: So you listed a few companies. I have to ask do you have a favourite?
Bruce Linton: So the two that have had the most active response have been BTTR choice and the psychedelic.
It’s just because they’re a little bit more at the edges. It’s not right up the middle. You know people don’t realize when I talk about Gage people would get like Michigan’s a massive consumption state with a very limited supply chain. That’s a big deal but people’s imagination struggles to get their head around Slang right and it’s a great story but people can right away go I have a dog, you did it, right. And people can right away go so the psychedelics might help with like suicidal intent in depression. That’s important do that.
I’d say the two outliers were those but you know they all come and at stages because where I like to go is where they need money and they have a challenge and so if it’s my favourite might not be yours right.
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