Operator: Your next question comes from Pablo Zuanic at Zuanic & Associates. Please go ahead.
Pablo Zuanic: David, I want to talk about Canopy USA. And here, maybe the simple question as would be remind us of the benefits of Canopy USA for the company. And the reason I ask that if I wanted to play devil’s advocate, right, I could say you were supposed to — some of the benefits in terms of alignment between Jetty, Wana and Acreage, in my opinion, that could have been done without this transaction, right? The benefits from investors giving you credit for these U.S. assets are lost now because you cannot consolidate them, right? We don’t know how you’re going to disclose them in the future. On the other hand, this has been somewhat of a distraction, I could make the argument, right, your main competitor in Canada to control of Redecan, right?
Maybe you’ve dropped the ball in Europe, I mean correct me if I’m wrong. And it’s been disruptive, right? In the case Acreage, the CEO and the CFO are gone. So, I’m just trying to — I’m struggling to really get the benefits of Canopy USA after all is said and done. Thanks.
David Klein: Yes. Thanks, Pablo. So, a couple of points that I would make. We believe that the U.S. market is a market that we want to win in, which is why we’ve rightsized Canada, so that we have a business where we can be profitable kind of at its current run rate. We do believe that the profit pool in the U.S. is the one that we want to attack, and we actually think that our brand-led approach is a strong approach in that market. Jetty, Wana and Acreage are already beginning to work together, as you call out. So they didn’t necessarily need the structure to do that. But it certainly makes it easier when that business is put together all by itself. So, those businesses are merged together. There are significant synergies to be extracted from an operating standpoint, from a public company standpoint that we think are important.
Now, we will be able to disclose what that business looks like. We won’t be consolidating it through our results, but we will be in a position to talk about what our consolidated — what our Canopy USA as its own consolidated entity will look like, post the transaction, once those businesses have been merged. And then, Pablo, again, it’s like — the good thing about strategy is a good strategy usually is one that you could do the opposite of it and still find it a fair strategy, right? So, we believe that focus on the U.S. is better than trying to expand into other markets or into other categories. Judy mentioned how we want to simplify our business to be a very cannabis-focused business and very focused on North America. We think that’s a good — that provides a great path for us to create a lot of value in the medium term.
And so, that’s the — I guess, that’s the position that we’ve taken. And we think we still believe that it’s the right approach for us.
Operator: Your next question comes from Doug Miehm at RBC Capital Markets. Please go ahead.
Doug Miehm: My question really has to do with the checks and balances that the Company might have in place as it relates to oversight functions given the material changes that we’re seeing right now. And really in place to ensure that you don’t have any unforeseen potholes or bumping into sharp objects. David, maybe you could talk about what you’re doing to implement those types of checks and balances to ensure that we don’t run into other issues?
