Brenna Cunnington

Brenna Cunnington asked for an estimated timeline for Organigram to receive its EU GMP certification, given the recent feedback and additional questions from regulators.

Answer

CEO James Yamanaka stated that the company is working closely with regulators to address their questions and clarifications as quickly as possible, but could not provide a hard timeline due to the unpredictable nature of regulatory processes.

Brenna Cunnington asked about the potential timeline for Organigram's pending EU GMP certification, acknowledging the unpredictability of regulators but seeking insight into the company's expectations.

Answer

CEO James Yamanaka stated that Organigram is actively working with regulators to address additional questions and clarifications received in January 2026. He indicated that while the company is striving for the fastest possible resolution, a hard timeline cannot be provided due to the nature of regulatory processes.

Brenna Cunnington inquired about Canopy Growth's cash balance, post-recapitalization, asking how much cash the company aims to keep on hand, the top priorities for excess cash, and the estimated upfront spend required for the MTL integration. She also asked about strategies to improve and stabilize Storz & Bickel's sales going forward, given recent improvements.

Answer

Head of Investor Relations Tyler Burns stated that Canopy aims to maintain sufficient cash for flexibility and future opportunities, noting the current position is healthier than expected. He estimated the cash outlay for the MTL acquisition to be between CAD 40 million and CAD 50 million. CFO Tom Stewart discussed Storz & Bickel, highlighting a two-pronged strategy: expanding market penetration and usage in the U.S., and accelerating innovation. He mentioned price point expansion, exemplified by the successful VZ entry-level device, and expanding the brand into devices for concentrates and distillates.

Brenna Cunnington inquired about Canopy Growth's cash balance, which stood at CAD 376 million at quarter-end and CAD 425 million post-recapitalization. She asked how much cash the company intends to keep on hand, the top priorities for excess cash, and the estimated upfront cash spend for MTL integration. She also asked about strategies to improve sales and stabilize the Storz & Bickel business going forward, given recent improvements.

Answer

CFO Tom Stewart stated that the company aims to maintain sufficient flexibility and cash for market opportunities, describing the current position as "healthier" without pinpointing a specific number. He estimated the cash outlay for the MTL acquisition to be between CAD 40 million and CAD 50 million. CEO Luc Mongeau outlined a two-pronged strategy for Storz & Bickel: expanding market penetration and usage in the U.S. (where brand awareness is low) and accelerating innovation through price point expansion (e.g., the successful VEAZY device) and expanding into devices for concentrates and distillates, a large market segment currently untapped by the brand.

Brenna Cunnington asked about the potential uses for funds raised through the At-the-Market (ATM) equity program, specifically inquiring about interest in M&A, cultivation capacity expansion, or other strategic goals. She also sought an estimate for the SG&A savings expected from exiting parts of the Canadian consumer cannabis market. Finally, Ms. Cunnington asked if Aurora Cannabis is exploring any other new international markets for expansion.

Answer

Miguel Martin, Executive Chairman and CEO, stated that the ATM program provides opportunistic flexibility for strategic and accretive purposes, including M&A and cultivation capacity, particularly for GMP flower for international markets. He noted that SG&A savings from the Canadian consumer exit are still being evaluated but are expected to be beneficial, alongside the reallocation of inputs to higher-margin international markets. Mr. Martin confirmed Aurora is actively looking at new international markets, including Switzerland, Austria, France, Ukraine, and Turkey, leveraging its regulatory and EU GMP product expertise.

Brenna Cunnington asked about the potential uses for funds raised through the new At-the-Market (ATM) equity program, specifically regarding M&A, cultivation capacity expansion, or other strategic goals. She also inquired about the expected SG&A savings from exiting Canadian consumer cannabis markets and whether Aurora Cannabis is exploring other international markets.

Answer

Miguel Martin, Executive Chairman and CEO, stated the ATM provides opportunistic flexibility for accretive purposes, including M&A and cultivation capacity, consistent with their global medical cannabis focus. He noted that SG&A savings from the Canadian consumer exit are still being evaluated but anticipate benefits from reallocating inputs to higher-margin international markets. Mr. Martin confirmed Aurora is actively looking at new international markets like Switzerland, Austria, France, Ukraine, and Turkey, leveraging their regulatory and GMP product strengths.

Brenna Cunnington asked for clarification on the Canadian cannabis gross margin decline, questioning if it was resolved or would continue to be a drag. She also asked for the company's perspective on the potential process and outcome of U.S. cannabis rescheduling following the recent election results.

Answer

COO Ann Gillin Lefever clarified that the gross margin decline was due to the sales mix, specifically a higher volume of lower-margin B2B sales, and not from stock-outs. She noted that the gross margin on branded products actually improved sequentially and is back within their 30-40% target range. CEO Mike DeGiglio expressed increased bullishness on U.S. rescheduling, citing the incoming administration's past action on legalizing hemp and the potential for new leadership in the Senate and FDA to be more favorable to the industry.

Brenna Cunnington, on for Frederico Gomes, asked for commentary on consumer trends, product trade-downs, and an update on international (Germany) and provincial (BC) expansion opportunities.

Answer

President and CEO Harkirat Grover reported that dry flower, particularly infused pre-rolls and value-sized bags, remains dominant, with disposable vapes also growing strongly. He stated High Tide is closely monitoring Germany with plans to apply for licenses by mid-2025. Locally, he believes British Columbia is likely to raise its 8-store cap to as high as 16 stores within the next 6-12 months to combat the illicit market.