Continuing a string of international purchases and expansions, Canopy Growth Corporation (TSX:WEED; NYSE:CGC) just acquired a licensed cannabis company located in Alicante, Spain.
The all-cash deal sees Canopy buying out Cáñamo y Fibras Naturales S.L. – known more widely as Cafina – for an undisclosed amount.
Cafina is one of only a handful of Spanish companies currently licensed by the Spanish Agency for Medicines and Health Products to grow and distribute medical marijuana containing more than 0.2% THC.
Current Chief Executive Officer Xavier Delas Martinez will continue to oversee the company following the finalized purchase deal this morning.
The acquisition will additionally see an influx of capital through Canopy Growth for Cafina to expand existing operations. Those operations include a greenhouse for researching advanced growing and crop harvesting methods, in addition to developing new strains and product lines for medical patients.
Canopy Growth’s Co-Chief Executive Officer Mark Zekulin commented on the completed deal:
The Cafina acquisition will work alongside the company’s existing facilities in Odense, Denmark and Tütlingen, Germany as Canopy Growth seeks to radically expand its capabilities in Europe.
This is just the latest in a series of moves as the company looks beyond recreational cannabis sales in Canada to a broader medical and recreational customer base worldwide.
Last month, Canopy Growth announced a five-year extension to the company’s partnership with seed supplier DNA Genetics with a focus on European markets rather than previous operations taking place solely in Jamaica and Canada.
That partnership extension followed on the heels of Canopy entering the UK medical cannabis market through the Spectrum Biomedical UK joint venture with Beckley Canopy Therapeutics.
On the southern side of the Canadian border, Canopy also recently acquired a US-based hemp company, with plans in the works for a major industrial hemp grow park in New York state.