Canopy Growth Corporation (TSX: WEED, NYSE: CGC) announced last week that it has acquired Canadian Extractor KeyLeaf Life Sciences in a move to support its long-term extraction needs. Canopy Growth says that it has completed a transaction to acquire Saskatoon-based bio-product extractor KeyLeaf Life Sciences, related entities, and intellectual property, its large-scale Canadian extraction facility and its extraction-related facility in the United States. The timing is strategic as Canada is set to legalize volatile solvent extractions nationwide in October of this year.
This is not the first time that the companies would be working together. Previously, Canopy Growth assumed control of KeyLeaf for accounting purposes in November 2018. With this move, KeyLeaf’s financial results were consolidated in the Company’s fiscal 2019 financial statements. The past year also saw KeyLeaf working closely with Canopy Growth to retrofit its Saskatchewan facility with advance technology to prepare it for processing hemp and cannabis biomass, and conduct pre and post-extraction processing. When finished, the facility is expected to process up to 5,000 kg of input materials.
“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,” said Bruce Linton, Chairman & co-CEO, Canopy Growth Corporation. “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.”
Canopy Growth’s acquisition of KeyLeaf and its Canadian extraction facility, along with other owned and partner extraction options will enable it to process 5,000 acres of Canadian CBD hemp production, over 160 acres of outdoor cannabis production, as well as any extraction materials outputted from its over 4 million square feet of greenhouse growing operations.
About Canopy Growth Corporation
Canopy Growth (TSX: WEED, NYSE: CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents.
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