Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) and HollyWeed Manufacturing & Extracts have entered into a multi-year processing agreement.
HollyWeed is owned by HollyWeed North Cannabis, the parent company which operates several subsidiaries engaged in the growth, manufacturing, licensing, and production of cannabis and other pharmaceutical grade products.
Under the terms of the two-year agreement, HollyWeed will process dried cannabis supplied by Canopy in its manufacturing facility in Victoria to produce the oil and resin.
The companies expect the first shipment of product for extraction will arrive in fall 2019.
Canopy says that the extraction services provided by HollyWeed will build on its own in-house manufacturing and production based in Smiths Falls, Ontario. The services will extend Canopy’s production commitment in British Columbia, where it currently has more than three million square feet of fully operational grow space located in Delta and Aldergrove.
Canopy is looking to introduce new cannabis products. The increased supply of the contracted extraction throughput will support the company with additional throughput as it brings a suite of new products to the market later this calendar year.
Bruce Linton, the chairman and co-CEO of Canopy, states that the agreement “is an opportunity for Canopy Growth to build a strong partnership with another high-quality Canadian company. 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.â€
“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,†Linton notes.
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