Looking beyond the borders of Canada for new deal opportunities, the Ontario-based Canopy Growth Corporation (TSX:WEED; NYSE: CGC) just extended out an existing partnership to tap into a European market.
Originally set to expire this year, the company has now committed to continuing its partnership with cannabis seed supplier DNA Genetics. This newly struck extension of the deal will additionally go further than previous operations in Canada and Jamaica.
The DNA / Canopy partnership will now continue another five years to run through 2024 and is slated to include a currently undisclosed European market to be named in the coming weeks. DNA currently provides dozens of seed types with a variety of terpene profiles – such as “double stuffed sorbet” and “L.A. Chocolat” — both directly to consumers via online sales as well as wholesale to licensed producers.
DNA Genetics’ Chief Executive Officer Charles Phillips commented on the renewed deal:
While legalization in Canada last year created a surge of acquisitions and greenhouse construction projects, the industry has seen a marked shift towards European and Latin American investments in recent months.
Notably, Tilray (NASDAQ: TLRY) just stated the company would no longer buy what the company deems to be overpriced Canadian assets after releasing Q4 2018 financial numbers today.
Canopy Growth has also steadily focused on international operations in 2019, including bringing on a new Director Of Global Medical Services last month to find clinic partnerships in other countries. The company additionally entered the joint Spectrum Biomedical venture back in January to supply medical cannabis in the UK.
In other recent news, Canopy Growth just tapped patient advocate icon Hilary Black to work towards increased medical cannabis access in Canada and abroad, and made a surprising move into an unexpected area of the CBD market. The company announced last month that it is now partnering with Martha Stewart to research CBD products meant for consumption by pets rather than human customers.