Tweed Farms Inc., a subsidiary of Canopy Growth Corp (TSX: WEED), has finalized a land purchase next to its current facility in Niagara-on- the-Lake, Ontario that includes an operational 485,000 sq ft greenhouse. This will bring its total owned grow space to be developed to over 1 million sq ft. The stock initially traded up 4% on the news, then settling about 1% higher to C$9.15 at midday.
The company has already begun construction on an additional 212,000 sq ft state of the art greenhouse located on the current property, which will be completed in April 2018.
Tweed’s currently producing facility offers 350,000 sq ft of flowering space. The fall 2017 harvest, soon underway, will be the third crop in this facility.
Canopy Growth bought the new property for $9 million—$6 million cash and $3 million equity, of which $2 million is contingent on milestones. The equity comprised 111,366 common shares subject to a 4-month lockup.
According to Bruce Linton, CEO of Canopy Growth, “we see a long term need for a diversified and exponentially larger footprint in Canada balancing indoor and greenhouse growing platforms. Expanding…allows us to continue to grow into the demand in the market…” The new facilities will create over 100 jobs, not counting the construction and spillover employment created by the expansion.
Canopy Growth is a diversified cannabis company, offering brands that include dried, oil and capsule cannabis forms. As marihuana laws liberalize around the world, Canopy plans to grow globally to meet the demand.
Source: CNW, Tweed Farms press release