This coming year will see a flurry of partnerships and acquisitions as the multitude of cannabis companies compete amongst each other to consolidate their market presence and cement themselves in the rather young cannabis industry. One of the world’s largest cannabis companies, Canopy Growth Corp (TSE: WEED)(NYSE: CGC), announced today it had entered into a big partnership with BC-based HollyWeed North Cannabis.
The two-year agreement between the two companies would see HollyWeed process dried cannabis provided by Canopy Growth in their advanced manufacturing facilities in Victoria. In return, they will be shipping top-of-the-line cannabis oils and extracts back to Canopy.
“This is an opportunity for Canopy Growth to build a strong partnership with another high-quality Canadian company. The cannabis resin we get from HollyWeed will be used for our current offering of oils and softgels, as well as our future advanced manufacturing products,” said Chairman and Co-CEO Bruce Linton. “Ensuring we continue to offer the highest quality cannabis oil and resin will be essential for our entry into the edibles market and supports our overall goal of making a wide variety of high-quality products available to our customers.”
Overall, the two companies expect the first shipment of extracted cannabis products to begin in fall 2019, with the resin being shipped shortly after that.
“We are very excited to provide extraction services to Canopy Growth, a global leader in cannabis production,” added Renée Gagnon, CEO of HollyWeed North Cannabis Inc. “We are incredibly proud that the quality of our proprietary extraction process caught the eye of an industry leader like Canopy Growth and will amplify their own world-leading extraction abilities. This is definitely a new and exciting chapter for HollyWeed.”
Canopy Growth is seen as one of the forerunners and major figureheads in the cannabis industry to date, although that recognition is changing as analysts on Wall Street have begun vouching for it’s closest competitor in size, Aurora Cannabis Inc (TSE: ACB)(NYSE: ACB), as the company with the most potential in the years to come. Earlier last month, Canopy also announced they were investing up to $500 million in hemp production in the newly legalized U.S. market. Around $150 million of that would be in New York after securing a coveted license in the state. Currently, the company intends to focus both on CBD and THC cultivation and extraction in an effort to address both markets, whether that comes in the form of growing traditional marijuana or hemp.
In response to the news, shares of Canopy Growth jumped around 6 percent during the first couple of hours in the market, before settling down at a mere 1.5 percent increase for the day.
Canopy Growth Corp Company Profile
Canopy Growth Corp through its subsidiaries is the licensed producer of medical marijuana in Canada. The company grows, produces and sells medical marijuana. It operates diverse brands and variety supported by over half million square feet of indoor and greenhouse marijuana production. It sells medical marijuana under various brand names including Tweed, Bedrocan, and Mettrum. A majority of the revenue is derived from the sale of medical marijuana by Tweed and Bedrocan in Canada. – Warrior Trading News