Canopy Growth Acquires Hemp Company to Accelerate Expansion in the United States
Apr 05, 2019SMITHS FALLS, ON: Canopy Growth Corporation (Canopy Growth or the Company) (TSX: WEED) (NYSE: CGC) is pleased to announce today it has acquired AgriNextUSA, a hemp enterprise led by CEO Geoff Whaling, that has been at the forefront of hemp advocacy and building a vibrant hemp sector in the USA.
The acquisition will accelerate Canopy Growth's entry into key American jurisdictions as regulations surrounding the full use of hemp as a crop begin to be implemented, thanks in part to the recently enacted 2018 US Farm Bill.
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 Bruce Linton, co-CEO and Chairman of Canopy Growth. Our significant investments, acquisitions and compilation of talented leaders such as Geoff will position us for swift expansion throughout the United States. By collaborating with a pioneer like Geoff, who has been involved with our team since our earliest days in 2013, we will aim to turn hemp supplied by American farmers into a wide range of products.
Hemp has the potential to disrupt several prominent industries: advanced materials, cosmetics, energy, fibre and textiles, food and protein production and the health and wellness sectors. In addition, hemp is a natural source of CBD, the non-intoxicating component of cannabis that can be used for health and wellness purposes in jurisdictions where legally permitted.
The vision proposed by AgriNextUSA and supported by Canopy Growth would involve creating Hemp Industrial Parks such as the one previously announced in New York State, where this super crop could be fast-tracked through a production cycle that would result in commercial applications for all parts of the plant, from root to tip. American farmers will benefit from a model that provides a single, regional destination for their hemp crops and connects them with the researchers, entrepreneurs and innovators whose ideas will turn their crops into new products and industries.
Hemp has the potential to become a multibillion-dollar industry that will boost the American economy for generations to come, said Geoff Whaling, CEO of AgriNextUSA, Chairman of the National Hemp Association and newly appointed Strategic Advisor, Hemp and CBD, Canopy Growth USA. By working with Canopy Growth, we will turn our vision into a reality, one that helps American farmers, small and medium-sized business owners, and the next cohort of innovators who see the extraordinary potential that hemp has to offer.
As previously mentioned, Canopy Growth is on track to build the first Hemp Industrial Park in the Southern Tier of New York State, after receiving a state license to produce and process hemp. The Company committed to invest $100M to $150M (US) into a hemp operation that will lead to significant job creation and positive local economic impacts, as well as the production of high-quality CBD products that meet the unwavering quality and innovation standards that Canopy Growth is known for around the world.
Though this cash purchase is not material to the Company's current cash position, the acquisition will hasten Canopy Growth's arrival in key markets in the United States. (PRN)
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