Canopy Growth Corporation (NYSE: CGC) just announced that the company has successfully completed a transaction to acquire KeyLeaf Life Sciences. The main reason behind the acquisition is Canopy Growth’s goal to effectively scale the company’s extraction processes for Canadian and global cannabis markets. Canopy Growth has effectively increased its ability to seize a bigger chunk of never-before-available Canadian cannabis product market share when Canada legalizes additional cannabis products in October of this year.
KeyLeaf Life Sciences, which once did business as POS Bio-Sciences, is a corporation with over 45 years in bio-product industries and holds intellectual property for the extraction of bio-products. Experienced members from Keyleaf’s team of chemists, engineers, and operators will remain on staff and assist Canopy Growth with the development of new staff in new extraction facilities worldwide.
Bruce Linton, Co-Chief Executive Officer and Chairman of Canopy Growth Corporation, stated: “This acquisition is the result of a year’s worth of work with a trusted partner, and part of our commitment to always staying a step ahead as leaders in a nascent industry, focused on the long-game one piece at a time. The KeyLeaf operations and team deliver instant scale at a pivotal stage in our growth, with brand new products coming to market later this year requiring sophisticated extraction capabilities at scale.”
Both companies have worked extensively together on the steps necessary to retrofit Keyleaf’s Saskatchewan facility. The facility needed advancement with its technology and its commercialization aspects for proper hemp and cannabis biomass extractions. After Health Canada finalizes the licensing for Keyleaf’s facility, it will have the ability to process up to 5,000 kg of plant material per day.
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