Canopy Growth enters the U.S. hemp market with an investment of 100-150$M

With the recent passage of the Farm Bill in the United States, the American hemp industry is set for a boom. Federal legalization of hemp opens the way to a multitude of economic opportunities. In addition to the CBD market, hemp fibers and seeds can be used to make textiles, building materials and dietary supplements. The State of New York plans to capitalize on this potential by creating an industrial park dedicated to hemp innovation in the Southern Pier region. It has already been agreed that Canadian producer Canopy Growth will move in.

A Canadian in New York

Canopy Growth will invest between $100 and $150 million to build processing and extraction facilities. These will form the park's main facilities, around which other companies invested in the hemp sector will be grafted. The company is currently examining sites for its future facilities. The exact location will be announced within the next 100 days. Canopy will not grow hemp, and will have to source exclusively from American farmers. The company will contribute its expertise in the extraction, processing and formulation of cannabinoid-based consumer products and medicines.

This installation in the New York park ensures that Canopy Growth can effectively distribute its products in the new American market. whose growth promises to be exponential. The fact that the company cannot produce hemp or import it from its Canadian sites is due to the fact that the Farm Bill is designed as a means of creating an additional resource for American farmers. Canopy will focus on innovation and the sale of value-added products, both of which are far more lucrative anyway. This is the first Canadian leader to assert itself in the American hemp market, but it's likely that others will seize the opportunity.

All the cards in hand

From Constellation Brand's $4 billion investment, Although the company has considerable financial resources, its main asset is its intellectual property. This consists of a multitude of cannabis strains, including CBD-rich hemp strains already produced in Canada at the company's Saskatchewan facility. «Canopy has been preparing for and investing in this opportunity for several years now, through strategic acquisitions, the construction of new infrastructures and intensive in-house research and development».» explains Bruce Lynton, the company's CEO.

As far back as 2016, Canopy Growth began adding strategic hemp assets to its portfolio. In November 2018, the company acquired ebbu Inc, a company with nearly 40 patents and 1,500 inventions related to Cannabis. Its team of scientists has also developed technology to optimize the speed and efficiency of harvesting and storage for commercial-scale operations. The company has all the keys in hand to develop innovative products rapidly, and has already announced the forthcoming unveiling of CBD brands and product ranges.