Canopy Growth Corporation (NYSE: CGC) announced a two-year processing and extraction agreement Wednesday with HollyWeed Manufacturing & Extracts Inc., a British Columbia-based, women-led business.
Why It Matters
Per the terms of the agreement, HollyWeed will process Canopy-supplied dried cannabis flower in its Victoria, British Columbia manufacturing facility. In turn, HollyWeed will supply Canopy with oil and resin extracted from the source material.
The partnership is expected to expand Canopy’s in-house capacity. The company has more than 3 million square feet of fully operational grow space located in Delta and Aldergrove.
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"This is an opportunity for Canopy Growth to build a strong partnership with another high-quality Canadian company," Bruce Linton, chairman and co-CEO of Canopy Growth, said in a statement.
“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. Ensuring we continue to offer the highest quality cannabis oil and resin will be essential for our entry into the edibles market and supports our overall goal of making a wide variety of high-quality products available to our customers."
Renée Gagnon, CEO of HollyWeed North Cannabis, shared her excitement over the partnership.
"We are incredibly proud that the quality of our proprietary extraction process caught the eye of an industry leader like Canopy Growth and will amplify their own world-leading extraction abilities. This is definitely a new and exciting chapter for HollyWeed," she said in a statement.
What’s Next
The first shipment of Canopy’s dried flower is expected to occur in fall 2019. It is anticipated that HollyWeed’s extracted oil and resin will be ready not too long after.
The agreement is expected to bring about a new suite of products under Canopy’s brand. The products are slated for release later this year.
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