Canopy Growth Corporation (NYSE:CGC) (TSE:WEED) said Wednesday that it has struck up a new processing and extraction agreement with HollyWeed Manufacturing & Extracts Inc.
Under the terms of the two-year deal, HollyWeed Manufacturing & Extracts Inc will process Canopy’s dried cannabis into oil and resin at its manufacturing facility in Victoria, British Columbia.
The extraction services provided by HollyWeed extends Canopy Growth’s production commitment in British Columbia where it has more than 3 million square feet of grow space in Delta and Aldergrove.
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“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 Bruce Linton, co-CEO of Canopy Growth.”This is an opportunity for Canopy Growth to build a strong partnership with another high-quality Canadian company.”
The two companies expect the first shipment of cannabis to be used for extraction will take place in fall 2019.
Headquartered in Smiths Falls, Ontario, Canopy Growth is the one of the world’s largest diversified cannabis and hemp companies, offering distinct brands and curated cannabis varieties in dried, oil and softgel capsule forms.
HollyWeed North, the parent of HollyWeed Manufacturing & Extracts, meanwhile, is a private Canadian company, established in 2016, boasting subsidiaries specializing in the growth, manufacturing, licensing and production of cannabis.
Canopy Growth shares held steady at $46.09 in pre-market trade on Wednesday.
Contact Ellen Kelleher at [email protected]
