Tilray CEO Says US Cannabis Consumers Are Confused About Regulation, 'Something's Got To Happen'

As Canada's legal marijuana program hits its fifth anniversary showing mixed results, the CEO of one of the largest cannabis companies in the world expresses his opinion on the industry. For Tilray Brands’ TLRY Irwin Simon, it’s been an amazing five years.

“It’s amazing,” Simon said on Tuesday’s Bloomberg Markets. “I sit here today and Canada is the only country in the world where recreational cannabis is legal.”

Tilray does not sell marijuana products in the U.S. because it's illegal on the federal level, which is why the company has expanded its U.S. focus to spirits, beer and food in addition to its medical marijuana operations in Europe, he noted.

Earlier this week, Tilray Medical, a division of Tilray Brands announced its contribution to an independent clinical trial to research the efficacy of medical cannabis as a treatment for glioblastoma, which is a severe form of brain cancer.

See Also: World-First Clinical Trial Using Cannabis-Based Drug To Treat Deadly Brain Tumors Recruits First Patients

Simon expressed hope that the U.S. will learn from Canada though he acknowledges that the Canadian cannabis industry has seen a lot of “investors hurt” and “a lot of market capitalization that evaporated.” Nevertheless, it has brought in about $700 million in excise tax and created numerous jobs and infrastructure. He added that the regulated marketplace also helped bring healthy, high-quality and clean products to consumers.

“In regards to the U.S., we're confused,” Simon continued. “We're still talking about SAFE Bank, we're still talking about MORE Act. We're still talking about these scheduling, even though we all live in New York City, we walk down the streets and we smell it on every corner. There are probably only five legal shops in New York. And I think the consumer is confused upon legalization.”

Taking this all into account and the fact that cannabis is scheduled the same as heroin, the Tilray CEO says “Something's got happen in the U.S.”

Regarding Canada, Simon acknowledged there’s still a lot of opportunity, with the market projected to reach $10 billion from its current $5 billion, but there’s going to be a lot of consolidation as many companies cannot raise enough capital.

“We're losing money out there from a bunch of them. And how do you stay in business with those kinds of economics?” Simon concluded.

See Also: Tilray's Best-Selling Canadian Weed Brand Goes Green With These Eco-Friendly Solutions

Price Action

Tilray shares were trading 0.96% lower at $2.06 per share when the market opened on  Wednesday.

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Photo: Courtesy of Joel Muniz via Unsplash