Canopy Growth updates U.S. hemp, CBD operations
Following passage of the U.S. 2018 Farm Bill, Canopy Growth (NYSE:CGC;TSX: WEED) provided an update of its hemp operations and expanded pathways to the American market for hemp-based products, including CBD products.
Canopy Growth began adding strategic hemp assets to its portfolio in 2016 with a focus on consumer-packaged goods. The company also began investing in field-scale operations in late 2017 in order to vertically integrate its hemp business to mirror its existing cannabis business.
"Canopy has been preparing for and investing in this opportunity for several years now, through strategic acquisitions, infrastructure expansion, and extensive internal research and development," chairman and co-CEO, Bruce Linton, said in a statement.
"With the door now open, we are moving fast to bring our considerable resources to establish the same market leadership position internationally that we have earned in the Canadian cannabis market,” he added.
Mr. Linton said Canopy has a strong supply of CBD; a significant channel presence; IP to drive the CBD industry forward to the benefit of consumers; and the balance sheet to act now.
Based on a successful first season, Canopy Growth's hemp division harvested more than 4,500 acres of CBD-rich hemp genetics in Saskatchewan. Once extracted, the company expects a yield of some 7,000 kilograms of hemp-derived CBD, repeatable annually. Extracted product can be stored as inventory over the long term as regulatory paths to the Canadian market are defined.
While there is no path to the U.S. market for CBD that is derived from Canadian-grown hemp, Canopy Growth is well positioned to assist and enable American farmers to move their hemp to market, which positions the company as an expert partner in the U.S., Mr. Linton added.