Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) signed a multi-year processing and extraction agreement HollyWeed Manufacturing & Extracts Inc. HollyWeed North Cannabis Inc. is the parent company of HollyWeed Manufacturing & Extracts Inc., which is a female-led, LGBTQ2-positive company based in British Columbia that operates several subsidiaries specializing in the growth, manufacturing, licensing, and production of cannabis and other pharmaceutical grade products.
“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,” said Bruce Linton, Chairman and co-CEO of Canopy Growth. “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.”
According to the statement, under the terms of the two-year agreement, HollyWeed will process dried cannabis provided by Canopy Growth, in their advanced manufacturing facility in Victoria and will return the high-quality oil and resin back to the company. The increased supply of this contracted extraction throughput adds to the Company’s in-house capacity and supports Canopy Growth with additional throughput as it brings a suite of new products to the market later this calendar year. The extraction services provided by HollyWeed will build on the Company’s own in-house manufacturing and production based in Smiths Falls, Ontario and will extend Canopy Growth’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.
“We are very excited to provide extraction services to Canopy Growth, a global leader in cannabis production,” remarked Renée Gagnon, CEO of HollyWeed North Cannabis Inc. “We are incredibly proud that the quality of our proprietary extraction process caught the eye of an industry leader like Canopy Growth and will amplify their own world-leading extraction abilities. This is definitely a new and exciting chapter for HollyWeed.”
HollyWeed and Canopy Growth expect the first shipment of product for extraction will occur in fall 2019 and anticipate being able to leverage the resin shortly thereafter.
Back in September, HollyWeed North Cannabis Inc. signed a letter of intent to acquire Women Grow, LLC for an undisclosed amount, but that deal was terminated in January.