Canopy Growth Corporation (TSX:WEED) to supply PEI, as well as expands its presence in Australia
SmallCapPower | January 17, 2018: Canopy Growth Corporation (TSX:WEED) announced Tuesday two MOUs (Memorandum of Understandings), one with the Province of Prince Edward Island (PEI), Canada for the supply of cannabis and the other with the Victoria State Government, Australia to collaborate on the research and technical capabilities in the production of medical cannabis in Australia. Prince Edward Island is the eighth province where Canopy Growth operates in Canada, while the Australian agreement marks its seventh international operation.
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As per terms of the MOU with the Province of Prince Edward Island, Canopy Growth will supply a minimum of 1,000 kg of cannabis for the first year. The tenure of the supply agreement is initially two years, renewable for a third-year upon agreement.
Mark Zekulin, President of Canopy Growth, said, “The Province of PEI and its management team have made impressive progress in their preparations for the legalization of cannabis. Along with Organigram and our existing PEI-based CraftGrow partner, Canada’s Island Garden, we are proud to be among the first suppliers in the province. “We’re looking forward to bringing popular brands like Tweed, Leafs By Snoop, DNA Genetics, and a number of the best independent craft cannabis producers across Canada to the people of Prince Edward Island through this agreement.”
Canopy’s MOU with Victorian State Government, Australia, involves research collaboration with Agriculture Victoria that will focus on medical applications for cannabis genetics, strain development, cultivation, and processing. The partnership will help in developing the emerging medical cannabis industry in Australia, whilst creating a leadership position for Australia and Canopy Growth in the Asia Pacific region. As part of the agreement, stabilized cannabis genetics from Canopy Growth’s Canadian operations have already been successfully imported into Australia and are growing healthily in the state of Victoria.
Commenting on the Australian MOU, Mark Zekulin said, “This agreement allows us to combine our expertise in medical cannabis with the world-leading bioscience research capabilities of Agriculture Victoria. With this important MOU, we hope to increase innovation and institutional understanding in the Australian medical cannabis market to ensure that our globally-recognized genetics are available in Australia for research and commercial purposes.”
Canopy Growth is the world’s largest cannabis producer with a capacity of over 30,000 kgs annually and the most valuable cannabis company in Canada with a market cap of $6.97 billion, 120.48x its TTM sales of ~$57.85 million.
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