Anthony Emecheta
Posted by Anthony Emecheta on Mar 23, 2019 11:49:51 AM

Canopy Growth Adds HollyWeed to Growing Extraction Deal

 

hollywood-signCanopy Growth Corporation (NYSE: CGC) (TSX: WEED) has signed a multi-year deal with HollyWeed Manufacturing & Extracts in an attempt to increase its capacity to produce oil-based materials from dried cannabis.

Victoria-based HollyWeed Manufacturing & Extracts is a subsidiary of British Columbia-based HollyWeed North. HollyWeed North specializes in the growth and production of cannabis and other pharmaceuticals as well as licensing and manufacturing.

Upon reacting to the deal, the co-CEO and chairman of Canopy Growth said, “This 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.”

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Canopy Growth will provide HollyWeed with dried cannabis while the company will process and return high-quality oil and resin to Canopy Growth. The first shipment is expected to occur sometime in the fall of 2019. Reacting to the agreement, CEO of HollyWeed North Cannabis Inc, Renée Gagnon said,

“We are excited to provide extraction services to Canopy Growth, a leader in Cannabis production. This is definitely a new and exciting chapter for HollyWeed.”

In the past, Canopy Growth has signed similar extraction agreements with Valens GroWorks and MediPharm Labs.

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