Irwin Simon, the CEO of the Canadian cannabis company Aphriais looking for additional opportunities to acquire brands in the consumer goods space in hopes of growing beyond cannabis.
“There are a lot of options in the US right now for food and drink, as well as other consumer goods. I know how to build consumer brands and convert them into cannabis once it’s legalized,” Simon said in an interview on CNBCs.Close the bell” Monday.
Simon previously founded the consumer goods company Hain Celestial Group, which specializes in natural and organic foods, beverages and personal care products. He stayed with the company for over 25 years, serving as CEO and Chairman.
“I do not know when [cannabis] Legalization takes place in the USA. I would like to continue to acquire certain companies like Sweetwater like Manitoba Harvest that can hold their own in the cannabis world if legalization is done with big margins, big growth and big penetration for us, “said Simon.
The company acquired Sweetwater, an independent craft brewer in the United States, in November. A month later, Aphria announced plans to merge with another Canadian cannabis company. Tilraytogether with its hemp consumer products brand Manitoba Harvest the top-selling cannabis company.
The company’s stock closed 14% to $ 13.95 on Monday after the company reported that coronavirus lockdowns in parts of Canada and Germany affected sales of its products in the third fiscal quarter. Revenue declined from the second to the third quarter, but was higher year-on-year.
For the three months ended February 28, Aphria reported a net loss of $ 361 million on sales of $ 153.6 million.
“In the US, we had a solid first full quarter of Sweetwater’s contribution, even with lower on-site sales compared to the same quarter last year as many food service facilities were still operating on limited capacity,” said Simon in a press release.
Aphria shareholders are due to vote on the Tilray deal on Wednesday. Tilray stock closed at $ 17.19 on Monday, down 13%.