It’s been a busy week for Canopy Growth Corp (TO:WEED). In the last three days, the Canadian marijuana producer has made three announcements that expands its presence in the rapidly developing cannabis sector. And it’s only Thursday.
This morning, the Ontario-based pot producer announced the acquisition of AgriNextUSA, an American-based hemp producer. The deal is being touted as a move to accelerate Canopy Growth’s expansion into the now-legal hemp market south of the border. Hemp is now a legal substance in the U.S. since the passage last December of the U.S. Farm Bill.
“The United States is the next stop on Canopy Growth’s desired path to becoming a leading revenue-generating company focused on all aspects of cannabinoids and their potential,” Bruce Linton, co-CEO and chairman of Canopy Growth, said in a statement.
Linton pointed to AgriNextUSA’s CEO Geoff Whaling, a high-profile pioneer in the move to legalize hemp in the U.S., as being a key figure in the deal.
“By collaborating with a pioneer like Geoff, who has been involved with our team since our earliest days in 2013, we will aim to turn hemp supplied by American farmers into a wide range of products.”
According to observers, hemp is positioned to disrupt several industries – everything from food to cosmetics, and textiles to wellness products.
“Hemp has the potential to become a multi-billion-dollar industry that will boost the American economy for generations to come,” Whaling said.
The deal will see Canopy Growth invest between US$100 million and US$150 million at its proposed New York hemp operations.
Yesterday, Canopy Growth announced a multi-year agreement with British-Columbia-based HollyWeed North Cannabis Inc. to process dried cannabis in a facility in Victoria to produce high-quality oil and resin. This will help Canopy better meet the demand for new CDB-infused edible products, expected to hit Canadian markets later this year when they are legalized.
And on Tuesday, Canopy Growth trumpeted a new agreement to extend its partnership with OG DNA Genetics, a globally recognized cannabis brand, to bring the company’s reputed genetics into the European market. Details of the expansion plan were not disclosed, but the deal extends the partnership through to 2024.
Last month, Canopy Growth reported its third quarter financial results for the period that ended Dec. 31, 2018. Net revenue was C$83 million, up 282 percent from the year before. Total product sales were also up 334 percent. Adjusted EBITDA third quarter results showed a loss of C$75.1 million compared with a loss of C$5.7 million in the same period the year before.
Canopy Growth stock today are trading at $61.88, down 0.67 percent on the day. Yesterday, shares hit a mark of $64.37 before closing at $62.30. The company has a market cap of $21.13 billion.