With new regulations about to arrive for edible and vape products in October, Ontario-based Canopy Growth Corporation (TSX: WEED; NYSE: CGC) just added a third extraction facility to the company lineup.
The existing KeyLeaf Life Sciences site in Saskatoon is now officially licensed by Health Canada and is on track to begin extracting hemp and cannabis biomass this coming fall.
Canopy Growth added the site to the company roster with the acquisition of KeyLeaf Life Sciences (formerly known as POS Bio-Science) back in June.
The facility was then retrofitted in the intervening months and will be capable of extracting 5,000 kg per day for a variety of CBD and THC products. Notably, extraction processes at the site will be utilized for the long-awaited cannabis infused beverage launch expected to arrive by the end of the year.
Canopy Growth’s Chief Executive Officer Mark Zekulin – who stepped into the role after Bruce Linton was ousted last month – had this to say about the newly approved facility licensing:
Aside from gearing up to produce that new line of products such as vaporizer pods and edibles, Canopy Growth recently extended a U.S. distribution deal with Greenlane Holdings. That deal was handled through subsidiary Storz & Bickel and will see the new Volcano Hybrid vaporizer model hitting shelves across the United States.
Bumping up extraction efforts and inking distribution deals are two prongs of the company’s approach to increasing revenue in light of poor quarterly financial numbers.
Canopy’s stock has gone through a series of peaks and valleys in recent months, skyrocketing up to $56.89 a share just after recreational legalization last year but then following the overall cannabis industry trend downward to a current price of $25.19.
In other company news, earlier this month Canopy entered an agreement to acquire research organization Beckley Canopy Therapeutics, which will support the commercial side of medical subsidiary Spectrum Therapeutics.