Irwin Simon, CEO of Aphria Inc., sees great opportunities as Democrat Joe Biden prepares to be sworn in as president of the United States next week. The appointment of the new president will likely lead to stronger short-term potential through a change in federal cannabis regulations, he said.
"We expect changes to take place more quickly and decisions to be made earlier under the new democratic leadership." Many of Aphria's competitors are also looking forward to Biden's inauguration.
Safe Banking Act strengthens cannabis market
Biden's party is behind the Safe Banking Act, a bill allowing financial institutions to work with cannabis companies without retaliation. Biden and Kamala Harris have also spoken positively about decriminalizing cannabis and lowering penalties for possession. Five states - Arizona, New Jersey, South Dakota, Mississippi and Montana - have also recently voted to legalize recreational or medical cannabis.
Aphria Inc. sees cannabis market flourish
Simon positions Aphria to take advantage of these developments with a scalable infrastructure. For example, in November, the Atlanta-based SweetWater Brewing Co. acquired for $ 300 million dollars. In doing so, Aphria has gained access to a network of mostly American relationships with 29.000 retailers, more than 10.000 restaurants and bars and even Delta airlines. Simon indicates that at least 68 percent of Americans are already in favor of legalization. In addition, Aphria recently announced a merged with Nanaimo-based rival and mega cannabis company Tilray Inc. Together they establish the largest cannabis company in the world.
If the deal closes as expected in the second quarter of 2021, Simon will lead the new company. The company will trade under the name Tilray (TLRY) on the Nasdaq.
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