AMY STEPHENSON CAREER HIGHLIGHTS

• Appointed CIO, Asterion Cannabis Inc.,in April 2020
• 20 years experience working in capital markets and managing public companies
• CFO of Cura Cannabis Solutions, Aurora Cannabis, The Green Organic Dutchman and Bedrocan 
• Instrumental in the Tweed merger with Bedrocan to form Canopy Growth
• Non-member (Public) Council and Audit Chair to the Association of Professional Geoscientists of Ontario (APGO) for six years, and a regular speaker on mining finance and women’s issues
• Member of the Board and Audit Committee as well as Chair of the Programming
  Committee, CFA Society Toronto

Amy Stephenson has worked as a financial executive with expertise in corporate finance. She specializes in M&A, IPOs, and dealing with complex accounting and compliance issues for public companies, and her involvement in M&A includes Canada, the United States, Australia, China, Africa, and Latin America. Amy also has experience with numerous U.S. cannabis companies and MSOs (multi-state operators) involved in cultivation, extractions, and edibles. She shared with us how she chose her field, the impact of COVID-19, and what the CFA designation has meant to her.

What drew you to your field? Did you have a mentor or role model who encouraged you to pursue a career in finance?

I grew up listening to my father, who was a banker, talking about the stock market at the dinner table, terms like stocks, IPO, and M&A have been familiar vocabulary since I was in grade school. When I went through my MBA core courses, finance was the last. I found it most interesting and relevant; I even love diving into the notes to financial statements. One of my professors was a kind gentleman who gave me an important piece of advice. He said, “If I were you and interested in making a career in finance, I would become a CFA.” He said that it was a very young organization, but it was going to grow. The idea appealed to me, as I believe there are more opportunities with a growing organization. 

You have extensive M&A experience across several industries. What has drawn you to the medicinal cannabis industry at this point in your career? 

It was a chance opportunity. A good friend and colleague of mine referred me to Bedrocan Cannabis in 2015. The industry was not widely accepted, and struggling. I had little industry knowledge but was impressed by the growing method the company licensed from Bedrocan BV, a Dutch company that has been supplying medical cannabis on behalf of the Dutch Ministry of Health to the EU for 14 years. At Bedrocan, I worked with people from a diverse background, all passionate with their involvement and the medical benefits. My mandate was to complete the first M&A transaction in the industry—to merge Bedrocan and Tweed to form Canopy Growth. I looked at the two companies and realized I had a winner on my hands. It was the most promising merger I have seen, which I called, “one plus one equals at least three.” Their strengths and weaknesses were complementary, they have similar cultures, and the math worked. 

How has the COVID-19 pandemic impacted M&A and IPO activity? What challenges and opportunities do you see in the months ahead?

Crisis creates opportunities. COVID-19 will result in many M&A opportunities, and cash is king. Unfortunately, small businesses will suffer, and I can see that companies with access to capital will be able to consolidate and roll up their smaller competitors. Marginal businesses will not be able to sustain a prolonged pandemic. Private equity funds that are well financed can pick and choose in a buyer’s market. Individuals with good track records will be able to raise blind pools, like SPACs, and wait for good acquisition targets. 

Are there any special ethical considerations associated with working in finance in the cannabis sector? 

We work in a sector that is controversial, but also highly regulated. As CFOs, we are gatekeepers for our stakeholders to safeguard the assets of the company. So, while it is important that we ensure sufficient financial controls are in place, we also need to have a clear moral compass. Balancing the cannabis used for medical and wellness purposes has proven to improve quality of life. Most ethical discussions are centered around recreational cannabis, and for me it is around substance abuse and access by minors. In my opinion, each of us are responsible for our behaviour. There will always be abusive behaviours—abusing alcohol, drugs, credit cards; the list goes on—and there will always be underage children trying to use it for fun or self-medication. Both realities require effective regulations and policing, and, more importantly self-discipline. We all must do our part and, as CFO, my job is to work with our compliance team and strictly adhere to regulations as part of my mandate for our stakeholders.

How did the CFA designation benefit your career, and how does it complement your CPA, CMA, and MBA designations?  

I started my CFA in the last year of my MBA studies, which has been extremely helpful. My CFA designation allows me to transition from merchant banking and M&A activities to my current career as CFO. I was weak in Canadian generally accepted accounting principles (CGAAP), as I did not major in accounting and, in addition, I was trained under US GAAP. But when Canada changed to IFRS (international financial reporting standards), I found myself ahead of my peer group as IFRS is fair-value–based and my CFA analytical skills were both relevant and useful. The CFA designation also gave me an advantage in financial planning and analysis—an important skill on the finance team, which I think requires more analytical skills than accounting skills.

Can you speak to diversity in the resource, cannabis, and finance sectors, based on your experience in these industries? 

I found the finance and the resource sectors to be diverse, both culturally and geographically, as these are international industries. While finance is cosmopolitan and concentrated in international cities, the resource sector focuses on remote areas around the world, except the mining capital markets. While I was in mining, oil and gas finance, it led me to China, Australia, Latin America, and Africa. I was lucky to have the opportunity to meet and work with people from different backgrounds and nationalities. This was helpful when I entered the cannabis industry, because the diversity I draw from my resource and finance experience allows me to keep an open mind on new frontiers. Cannabis has its own diverse characteristics. While some people still the industry as having a stigma, I have met some of the most amazing, friendly, creative, and compassionate people from all walks of life there. 

Do you have any advice for fresh graduates and young professionals to help them succeed in their careers today? 

The first and foremost thing about becoming a finance professional is that it not about making money, or becoming rich. It is about being responsible for other people’s money. If you put your stamp on your work so you can be proud of your profession, you will have a rewarding career.

FUN FACTS:

What book is on your nightstand? 
Outliers by Malcolm Gladwell.

Can you share a pivotal moment from your career?
When I received a cold call from the chairman of a U.S. company who hired me as CFO on the spot, asked what I wanted, and [when I told him] simply replied, “yes.”

What is your hidden talent
The ability to recognize opportunities. 

What person do you most admire?
My mother: a progressive, self-made single mom with little education bringing up three professional children.

Your motto?
Which one? I have many, but my favourite is, “The difference between a wise man and a clever man: the clever man will always get out of trouble that the wise man will never get into in the first place.”