Canopy Growth Corporation (TSX:WEED) announced that it will make an investment in Australia’s State of Victoria
SmallCapPower | May 1, 2018: Canopy Growth Corporation (TSX:WEED) Wednesday announced that it has launched Spectrum Cannabis Australia, the newest member of Canopy Growth family, in collaboration with the Victoria State Government in Australia. Over the next four years, Canopy Growth will invest up to A$16 million (~$16 million Canadian) in the State of Victoria for establishment of Spectrum’s Asia-Pacific (APAC) headquarters and research and development facility.
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Spectrum Australia’s Managing Director Ben Quirin remarked, “The State Government of Victoria has been an outstanding partner and welcomed our investment in the region with a shared passion for innovation in the medical cannabis industry. Victoria is now home for Spectrum as we introduce our world renowned medical cannabis products to the State, across Australia, and throughout the entire APAC region as jurisdictions establish legal, regulated medical cannabis regimes.”
Canopy Growth’s facility at Victoria will have domestic cultivation and production of high-quality medical cannabis for patients while serving as a distribution hub for other jurisdictions in APAC. Furthermore, it will function as the APAC Research and Development Center for Canopy Growth and support the ongoing research partnership between Spectrum Australia and Agriculture Victoria on innovations in medical cannabis cultivation and production.
Minister for Agriculture Jaala Pulford said, “Collaborating with international experts on cultivation and manufacturing will build Victoria’s capacity to develop our medicinal cannabis industry to be able to supply reliable and high-quality medicinal cannabis products.”
Spectrum Australia’s launch by Canopy Growth builds on the cannabis producer’s leadership position in the global medical cannabis space. The new venture’s priority will be to improve the lives of patients and will be attained by focusing on three core areas – ensuring an affordable and consistent supply of medical cannabis is available to patients in Australia; building production and research infrastructure in Australia; and engaging in rigorous evidence-based physician and pharmacist education to ensure patients’ access needs are met.
On April 24, 2018, Australia’s AusCann Group Holdings Limited (ASX:AC8) announced that it has been granted an import permit under its existing import licence and will soon receive finished cannabis oils from Canopy Growth, its major shareholder, which will be AusCann branded. AusCann says medical cannabis is a $9 billion opportunity in Australia alone.
Canopy Growth Corporation trades at market capitalization of $5.44 billion on the TSX with price-to-book multiple of 5.41x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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