Canadian-based cannabis and hemp company Canopy Growth Corp (NYSE: CGC) is looking to open hemp facilities across seven U.S. states within the next year, according to a Bloomberg report from Tuesday afternoon.
What To Know
Cannabis remains illegal at the federal level in the U.S., which forces Canadian companies to hold minimal to no exposure south of the border. In Canopy's case, the company plans on having seven hemp operations that will be "either built out or being built out" within 12 months, CEO Bruce Linton told Bloomberg. Extraction and processing of hemp was legalized in late 2018.
Canopy has a pending deal to acquire Acreage Holdings Inc (OTC: ACRGF) if cannabis is legalized at the U.S. federal level. Until the deal closes, Canopy has zero interest in pursuing new U.S. deals, according to the report.
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Why It's Important
If any small cannabis operators seek out an M&A deal with Canopy, Linton said his response will be to speak to Acreage.
Until the Canopy Growth-Acreage deal is finalized, Acreage will be able to access Canopy's brands and intellectual property.
Canopy Growth's stock closed higher by more than 5 percent at $41 per share. The stock was up about 2.5 percent Wednesday morning.
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