Ontario-based Canopy Growth Corp (TSX: WEED) announced a joint venture with an unnamed partner to build a 29-acre greenhouse in British Columbia, equal to 1.3 million sq ft. The JV will be called BC Tweed Joint Venture.
The agreement allows for an additional 39-acre greenhouse to be built in BC also, which equals 1.7 million sq ft.
Canopy will pay for the greenhouse with stock and cash, and will own 66% of the joint venture. It will issue the partner 310,316 common shares and a total of $20 million in cash.
Canopy already operates the industry’s largest greenhouse in Ontario. This JV will give it production facilities on both coasts.
Canopy Growth stock traded up 7% on the news, settling back to near its original price at $12.72. It has traded between $5.280 – $17.860 over 52 weeks. Its market cap is $2.18b.
Source: Canopy Growth Press Release