Canadian company Canopy Growth is expected to dump $100-$150 million into a US hemp cultivation and manufacturing site based in New York, CNBC reports.
Pending board member approval, that is likely to come within 100 days, the Canadian company, whose shares shot up 11% with the announcement, is likely to announce specific sites.
This is an especially poignant case and a big win for the hemp and CBD industry because the company previously had no interest in entering the US market prior to the 2018 Farm Bill. The CEO of the company, Bruce Linton, has been quoted saying that he has no interest in doing business in a company where marijuana is not legal at the federal level. The 2018 Farm Bill proves the United States federal government is making moves in the correct direction.
The company promises to source all of its hemp from American farmers. The company also says it will focus on every part of the hemp plant; from seed to cannabinoids. Below is an excerpt from the press release.
Canopy Growth will establish within the Hemp Industrial Park large-scale production capabilities focused on
hemp extraction and product manufacturing within the United States.
“Canopy Growth was founded to drive innovation within the cannabis and hemp industries. In New York we see an opportunity to create products that improve people’s lives,” said Bruce Linton, Chairman and Co-CEO, Canopy Growth. “In the process, we will create jobs in an exciting, highly profitable new industry. I applaud the political leadership at the federal and state level that has allowed today’s announcement to become reality.”
The release goes on to describe the specific types of extraction and production that they have planned for the location.
Canopy Growth will source hemp exclusively from American farmers for its American operations once up and running. The Company believes that the Farm Bill has the power to create a thriving new industry with American farmers as the backbone. Canopy Growth can add value by focusing on its areas of expertise,
including extracting, processing and formulating cannabinoid-based consumer products and medicines. With the recent passage of the Farm Bill and support of the State of New York, management is confident in a path to market hemp-based cannabinoid products in America.
You can read the full press release from Canopy Growth here.
Find out more about Hemp Crate here.