Canopy Growth Corporation (TSX:WEED; NYSE:CGC) is capping off a busy week of deal making by moving more firmly into the U.S. hemp industry.
This morning, Canopy announced the acquisition of AgriNextUSA along with plans to invest $100 million into constructing a hemp industrial park in New York state.
Follow the acquisition, AgriNextUSA’s Chief Executive Officer Geoff Whaling will join Canopy under the title of Strategic Advisor for Hemp and CBD. Whaling additionally serves as chairman of the National Hemp Association, an agricultural organization focused on assisting hemp companies across the country.
Hemp and hemp-based CBD products just received a massive kickstart in the U.S. with the passing of the 2018 farm bill late last year.
While CBD has been the major focus on products released so far in the U.S., the potential for hemp products is far broader than vape oils and gummies. Applications in food, health, and wellness, beauty, and even textiles are notably being eyed by cannabis companies with the funds to acquire existing hemp producers.
Last month, Canadian cannabis giant Tilray (NASDAQ: TLRY) acquired hemp-based food company Manitoba Harvest in a cash and stock deal valued at more than $300 million and expected to see a new line of health bars released soon.
Green Growth Brands (CSE: GGB; OTCQB: GGBXF) meanwhile has been busy quickly opening new Seventh Sense retail stores in multiple U.S. states. Those stores primarily supply hemp-based CBD beauty products directly to public consumers.
Discussing the potential for producing hemp-based commodities across multiple markets, Canopy’s co-Chief Executive Officer Bruce Linton commented:
Aside from closing the AgriNextUSA acquisition today, Canopy Growth also struck a multi-year extraction deal with HollyWeed North Cannabis Inc. earlier this week, and began the process of expanding into Europe by extending the company’s partnership with seed supplier DNA Genetics.