Proactive Investors - Run By Investors For Investors

Canopy Growth extends reach in US with acquisition of hemp company AgriNextUSA

The Canadian cannabis producer plans to build a hemp-growing facility in New York state
Acquisition sign
Hemp was legalized in the US by the 2018 Farm Bill

Canopy Growth Corporation (NYSE:CGC) (TSE:WEED) announced Thursday the acquisition of hemp company AgriNextUSA for an undisclosed sum.

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.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full WEED profile View Profile

Canopy Growth Corporation Timeline

Related Articles

cannabis bud on tray
April 25 2019
Armed with a new partnership with Canada's largest pharmacy and an international cultivator, Flowr is aiming to provide medicinal and recreational consumers around the world with premium, high-quality cannabis
November 02 2018
Back Home Medical Cannabis Corp has agreed on a 24,000-kilogram three-year production and supply agreement
cannabis plant
May 05 2019
The cannabis company invests in income-producing property and provides financing solutions and capital investment to service the blossoming cannabis industry
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use