Canopy Growth Inks Big Supply Deal

Canopy Growth Corporation (TWMJF) and the Province of Newfoundland and announced on Friday that they have entered into a supply and production agreement. Canopy Growth will supply 8,000 kg of high-quality cannabis products annually for the first two years of the deal – making it one of the largest deals to date.

According to the statement, Canopy Growth will establish a new production facility in Newfoundland and Labrador capable of producing 12,000 kg per year, bringing 145 jobs in an emerging sector and major capital investment to the region. It is the largest provincial cannabis supply agreement announced to date and will assure a regulated supply of cannabis for Newfoundlanders and Labradorians as the country prepares to legalize adult use heading into the legal adult access market.

Canopy’s operations will soon stretch from Coast to Coast, with locations now planned in seven provinces including Newfoundland and Labrador,” said Bruce Linton, CEO, Canopy Growth. “Wherever we operate we look for ways to integrate ourselves into the local community to make sure we are giving back to the communities we call home.”

Tweed, owned by Canopy Growth will be eligible to operate four new retail stores in the province. The company said this was a major milestone in that the four licenses would represent the first announced privately owned and operated legal cannabis retail locations in the country. Canopy is currently looking for locations for future production sites and Tweed is scouting for possible store locations. Ideally at the production facility, mimicking the arrangements of wineries and breweries.

“This agreement today with an internationally recognized producer not only guarantees a safe supply of cannabis for Newfoundland and Labrador before the federally imposed July 2018 implementation date but also results in the creation of 145 new jobs in our province,” said the Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation, Newfoundland and Labrador . “We will also use this as a framework for other agreements related to cannabis supply and production. Our vision is for an industry which leads to production, job creation, supply chain development and research and development in this province.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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