Canopy Growth Finalizes Key Component of Canadian Hemp Strategy by Closing Previously Announced Green Hemp Acquisition
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) is pleased to announce that it has closed the previously announced acquisition of assets and intellectual property from Green Hemp Industrie Ltd. (“Green”) and has welcomed Green’s Principal and Founder, Jason Green to the Canopy Growth family.
Canopy Growth will combine its own expertise in large-scale cannabinoid extraction processes with Green’s unique whole-plant hemp harvesting knowledge and library of stable CBD-rich hemp genetics to position the Company as a global leader in low-cost, high yield CBD production.
By diversifying its operations to include hemp harvesting and extraction, the Company will be investing in an innovative new agricultural sector and creating jobs for Saskatchewanians. The field operations alone are ready to scale from 600 acres in 2018 to 2,500 acres in 2019. To support this growth, custom built extraction infrastructure will be installed at Canopy’s Tweed Grasslands facility.
As an innovative new sector, Canopy Growth’s strategy has been welcomed by the provincial government. Saskatchewan is a natural fit for field scale hemp production. The provincial economy is positioned to benefit from Canada’s largest cannabis company anchoring its hemp operations in Saskatchewan.
“Saskatchewan provides an excellent platform for value-added innovation that enables diversification, commercialization and market development,” said the Honourable Steven Bonk, Minister of Economy, Saskatchewan. “As one of Canada’s leaders in commercial hemp production, Saskatchewan is well-positioned to attract investments from businesses like Canopy and benefit from the job growth this brings. We will continue to encourage responsible development of this industry in our province.”
The Tweed Grasslands facility last week passed a significant licensing milestone by receiving its sales licence under the Access to Cannabis for Medical Purposes Regulations (ACMPR). This is the eighth ACMPR licence and seventh sales licence held by Canopy Growth subsidiaries. Cannabis operations will continue at the site alongside the addition of hemp processing capabilities. Management believes that the logistical advantages of having its hemp production and processing in the same province will improve the efficiency of its CBD supply chain.
As a licensed ACMPR facility Grasslands is in a unique position to perform cannabinoid extraction on hemp crops grown by third party farmers. Canopy is open for hemp business in Saskatchewan.
“This strategy will fundamentally change the economics of CBD-based products on the market today,” said Mark Zekulin, President, Canopy Growth. “Whether extracted oils formatted for medically-authorized customers or over the counter offerings should regulations permit, look for Canopy to continue its commitment to patients by providing a range of high-quality products at competitive prices.”
On closing, the Company issued 24,576 common shares. The Company may issue up to another 24,576 common shares if certain production related milestones are achieved.