Canopy Growth Corporation (TSX: WEED) has purchased Green Hemp Industries and added Green Hemp’s founder, Jason Green, to its company. To close the deal, it issued 24,576 common shares, valued at somewhat over $600,000, at $25 a share. Canopy may issue up to another 24,576 shares if production milestones are met.
Canopy will combine its CBD extraction processes with Green’s whole-plant hemp cultivation and portfolio of CBD-rich hemp genetics, making it a global leader in low-cost, high-yield CBD production.
This will diversify Canopy, help the province develop a new sector of agriculture, and create jobs for Saskatchewanians. The field operations will grow from 600 acres now to 2,500 acres in 2019. Canopy will install custom-built extraction infrastructure at its Grasslands, Saskatchewan facility.
Saskatchewan is pleased. “As one of Canada’s leaders in commercial hemp production, Saskatchewan is well-positioned to attract investments from businesses like Canopy and benefit from the job growth this brings,” said Steven Bonk, Minister of Economy, Saskatchewan. “We will continue to encourage responsible development of this industry in our province.”
Canopy’s Tweed Grasslands facility received its sales license last week. It is the eighth ACMPR license and seventh sales license held by Canopy Growth subsidiaries. Canopy believes having hemp production and processing in the same province will improve its supply chain efficiency.
Canopy is also offering CBD extraction on hemp crops grown by third party farmers. According to Mark Zekulin, President, Canopy Growth, this move will “change the economics of CBD-based products on the market today.”