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Martello Technologies Group

Canopy Growth’s loss is Martello Technologies gain as Bruce Linton’s focus shifts

Former Canopy Growth co-CEO Linton says he will be helping Martello ‘out a bit more’ after stepping down from Canopy

Bruce Linton, former CEO of Canopy Growth Corporation
Bruce Linton (pictured) is currently co-chairman of Ontario-based Martello Technologies Group

Martello Technologies Group Inc (CVE:MTLO) (OTCMKTS:DRKOF) stock continued to soar Tuesday as investors were convinced the Canadian technology company would benefit from former Canopy Growth Corp (NYSE:CGC) (TSE:WEED) co-founder Bruce Linton’s deal-making skills.

Linton is currently the co-chairman of Kanata, Ontario-based Martello and was its CEO till 2017. 

Investors connected the dots after Linton appeared on multiple TV interviews sporting a Martello T-shirt to talk about his departure from Canopy, the company he founded, which is now the largest marijuana company in the world.

Martello stock climbed 39.3% on the OTC Markets to US$0.71, and 21.8% to C$0.95 in Canada.

READ: Cannabis stocks slide on Friday on the back of drops from Canopy and Tilray

Linton’s non-compete agreement means he can’t work in the Canadian cannabis sector, but that still leaves other jurisdictions wide open.

Linton told BNN Bloomberg he would be helping Martello “out a bit more” soon after it was announced he was stepping down from Canopy.

“He’s got a little bit more time for us – and that brings an enormous value to our team,” Martello Technologies CEO John Proctor told BNN Bloomberg.

King of deal making 

In an interview with Proactive's Christine Corrado, Martello Technologies' CEO John Proctor said he welcomed Linton's continued involvement in Martello.

"The first thing he did was shine a spotlight on us," said Proctor. "We're this little tiny company hiding in the corner that's suddenly got the spotlight on us and people got to look at us, lift the lid and say 'hey, we think you're a bit undervalued'."

"Since then, more people have looked at us and have recognized the potential. We've done all the right things. If you look at our two co-chairs, one is Bruce, the other is Terry Matthews, the guy who founded Mitel and Newbridge and Wales' first billionaire. There's a lot of horsepower on the board and on the executive team here as well."

Proctor said he plans to grow Martello both “organically and through acquisitions” with Linton’s help.

“[Linton] has been a very solid co-chair for us, guiding us on acquisitions,” said Proctor. “Bruce is Bruce. He’s straight, rolls up his sleeves, wants to get involved in the company…So it’s fairly easy for him to sort of guide us and just drop in, in that respect.”

According to Canadian media, Linton is unlikely to have a problem raising capital and making acquisitions given his large following in the investor community.

“Investing in Martello at the current price is simply a bet on Linton’s next venture. There is every chance that the current share price could look very cheap in a year or two,” said Grizzle.  

Martello develops solutions that optimize the performance of real-time services on cloud and enterprise networks with a specialization in unified communications systems.

Linton was pragmatic about his exit from Canopy, which he blamed on a clash of views with Constellation Brands Inc (NYSE:STZ), the alcohol giant that owns 36% of Canopy and holds a majority of its board seats.

“I don’t love this outcome but it’s not necessarily wrong for the company,” Linton told BNN Bloomberg TV. “I think they’ve earned the right and deserve the right to have more decisive input as to how it’s run.”

—(Updates with interview to Proactive Investors)—

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

Quick facts: Martello Technologies Group

Price: 0.34 CAD

Market: TSX-V
Market Cap: $70.23 m
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