The Smith Falls, Ontario-based company said in a statement that it hopes the new addition will help navigate a US market ripe for expansion after 2018's Farm Bill legalized hemp as a crop. Hemp is a source of cannabidiol, the non-psychoactive component of cannabis.
AgriNextUSA CEO Geoff Whaling, a longtime US hemp advocate, will join Canopy as a strategic adviser.
"The United States is the next stop on Canopy Growth's desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential," said Canopy co-CEO and Chairman Bruce Linton in a statement.
The cannabis grower plans to build a facility in southern New York, calling it a Hemp Industrial Park. There are commercial applications for all parts of the plant, which the company hopes to maximize.
Canopy received a hemp license from the state earlier this year and plans to invest between $100 million and $150 million in the project, which it previously said will source hemp exclusively from US farmers.
The stock dropped 1.7% to US$46.09 in New York and 1% to C$61.67 in Toronto.
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