Canopy Growth Corp (NYSE: CGC) is further strengthening its position as one of the leading cannabis companies in the world by receiving a license to start growing cannabis at its facility in Fredericton, New Brunswick.
What To Know
The newly-licensed facility was developed in collaboration with Canopy Growth's investment arm Canopy Rivers Inc (OTC: CNPOF). It operates under Canopy's flagship Tweed brand and will be involved in both local and global operations in both medical and recreational markets.
Canopy expects to start producing more than 5,000 kilograms of cannabis annually.
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The first harvests from the facility are expected to become available within six months. The company's immediate plans involve hiring a number of specialists, including lab supervisors, technologists, growers, post-harvest crews, quality assurance experts and shipping and maintenance crews. In the coming weeks, Canopy said it will be issuing details regarding local job fairs.
Why This Is Important
The legalization of cannabis in Canada was met with big supply shortages and producers like Canopy are ramping up their cultivation exports in order to meet the demand. Health Canada projects the annual demand for both medical and recreational cannabis to amount to 926,000 kilograms. In February, Brock University professor Michael Armstrong argued that at the current pace of production, this demand could be met by the end of 2019.
Opening a facility in Frederictoon will also help the local economy, as Canopy expects to fill up more than 130 jobs.
Canopy Growth's stock traded around $43.90 per share Monday morning.
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