With this announcement, Canopy Growth Corporation (TSX:WEED) is on its way to having over 5.6 million sq. ft. of domestic growing space
SmallCapPower | February 22, 2018: Canopy Growth Corporation (TSX:WEED) Tuesday announced that it acquired a cultivation license for the first of its two sites that are operating under the BC Tweed Joint Venture Inc. banner. Canopy Growth is gearing up to meet the unprecedented demand arising in the coming months as the adult cannabis recreational consumption market is expected to become legal in Canada later this summer. The initial licensing covers over 400,000 sq. ft. of growing space, which would run up to full 1.3 million sq. ft. in the coming months for flowering and the ultimate harvest.
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Canopy Growth’s President Mark Zekulin said, “Our team has made monumental and often historic progress in the retail landscape of every Canadian province to have announced its system to date. We are the only producer in Canada who can make this claim and we will continue to leverage our production platform in order to solidify a truly national presence for our cannabis brands. A cultivation license for our first BC Tweed site positions us to continue this trend as Canada’s, and indeed the world’s largest, most reliable and most diversified producer and seller of high-quality regulated cannabis.”
In a short span of time, the site was renovated with lighting, shade systems, security, and automated systems to meet the rigorous standards of both the ACMPR and Canopy Growth. The site received over 100,000 live cannabis clones, the largest single shipment in the Company’s history, from the Tweed Smiths Falls Campus over the past weekend.
BC Tweed’s focus will be on a second site, a 1.7 million sq. ft. greenhouse as the Aldergrove site is now in production stage. Canopy Growth is on its way to having over 5.6 million sq. ft. of domestic growing space.
BC Tweed’s Victor Krahn said, “As proud native British Columbians and long-time horticulture producers we are excited to continue the proud tradition of BC bud on a national scale. Working with Canopy Growth, we’re going to take the Tweed brand to the next level on the West Coast and bring the best our province has to offer to the country and the world.”
In another announcement, Canopy Growth signed an agreement with Sunniva Inc. under which Sunniva, through its wholly-owned subsidiary in Canada, Sunniva Medical Inc. (SMI), has committed to sell Canopy 45,000 kilograms of premium-quality cannabis annually over an initial two-year period beginning Q1 2019. This agreement is subject to SMI receiving its license from Health Canada, and completing the Sunniva Canada Campus, a 700,000 sq. ft. GMP greenhouse facility in British Columbia.
Burgeoning marijuana demand is forcing cannabis companies to expand their capacity and production. Canopy Growth currently trades at a market capitalization of $5.7 billion with a price-to-book multiple of 5.68x.
Disclosure: Neither the author nor his/her family own shares in the company mentioned above.
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