Planet MicroCap Podcast | MicroCap Investing Strategies

The 2025 Turnaround in Canadian Cannabis with Mathieu Martin, Portfolio Manager at Rivemont MicroCap Fund

Jun 26, 2025

Mathieu Martin, Portfolio Manager at Rivemont MicroCap Fund, dives into the evolving landscape of Canadian cannabis, spotlighting the emergence of profitable operators amidst a challenging market. He discusses why traditional investors are missing opportunities by overlooking cash flow over flashy revenue. Mathieu highlights standout companies like High Tide and the significance of regulatory changes. With a fresh perspective, he explores international markets and brand differentiation, urging listeners to reassess the cannabis sector.

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ANECDOTE

Journey Into Cannabis Investing

Mathieu Martin first avoided Canadian cannabis stocks due to speculative excesses during 2017-2019.
He became interested in 2024 after a team member introduced him to High Tide, a profitable growing retailer.

INSIGHT

Supply Shift Drives Profit Growth

The Canadian cannabis supply has been rationalized after overbuilding and many bankruptcies.
International exports and supply constraints have caused wholesale prices to rise, helping profits.

INSIGHT

Quality and Consistency Win Loyalty

Customers demand consistent cannabis quality and effects.
Emerging brands succeed by guaranteeing product consistency to drive repeat purchases.

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My guest on the show today is Mathieu Martin, Portfolio Manager at Rivemont MicroCap Fund. I've known Mathieu a long time, and he's a regular guest on the show. He's a generalist microcap investor who recently started exploring a sector many investors have written off entirely: Canadian cannabis. After years of avoiding the space due to its speculative excesses, Mathieu has been seeing the potential for a turnaround — with cleaner balance sheets, improving fundamentals, and profitable operators finally emerging.

In this episode, we talk about what’s changed in the Canadian cannabis landscape — from rationalized supply and reduced competition, to international export markets and stronger brand differentiation. Mathieu shares how he uncovered opportunities like High Tide, why some vertically integrated players like Cannara Biotech and Rubicon stand out, and how excise tax reform or expanded retail footprints could serve as powerful catalysts for the sector.

We also dig into why most investors are still stuck on the legacy LPs from the 2017–2019 bubble — and what they’re missing. Mathieu explains the importance of reading cash flow statements over flashy revenue growth, highlights accounting red flags, and discusses how to navigate this highly regulated, capital-intensive market with discipline.

If you’ve written off cannabis or simply haven’t revisited the Canadian names in years, this conversation might just change your mind, and for full disclosure, we discussed a number of companies on today's episode, and I'm not a shareholder in any of them.

For more information about Mathieu Martin, Rivemont MicroCap Fund and the Stocks & Stones Newsletter, please visit: https://stocksandstones.substack.com/

You can Follow Mathieu Martin on Twitter/X: @Stocks_Stones

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