Canopy Growth Outlines its CBD Advantage

Canopy Growth Outlines its CBD Edge

Canopy Growth wants to update the market on its hemp operations as it prepares for US market entry thanks to this transformative piece of federal legislation, one that empowers expanded pathways to the American marketplace for hemp-based goods, including CBD products.

Canopy Growth began adding tactical hemp assets to its portfolio in 2016 focused on consumer-packaged goods. The market potential for hemp and future CBD merchandise was soon realized and the Company began investing in field-scale operations in late 2017 in order to vertically integrate its hemp business to mirror its current cannabis business. 

“Canopy has been preparing for and investing in this prospect for several years now, through strategic acquisitions, infrastructure expansion, and extensive internal research and development,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “With the door now open, we are moving quickly to bring our considerable resources to establish the identical market leadership position globally that we have earned in the Canadian cannabis market. Canopy has a strong source of CBD, a substantial channel presence, the IP to push the CBD industry forward to the benefit of customers, and the balance sheet required to act now.”

The business’s world-class hemp group worked throughout the year to create proprietary and patent-pending technological solutions to optimize the speed and efficiency of harvest, post-harvest, and storage procedures necessary to conduct field-scale hemp operations.

According to a successful first season, Canopy Growth’s hemp division has harvested over 190 million sq. ft. (4500 acres) of CBD-rich hemp genetics in Saskatchewan. Once extracted, the company expects a return of roughly 7000 kilograms of hemp-derived CBD, repeatable annually.

Extracted product can be stored as inventory over the long term as regulatory avenues to the Canadian marketplace are defined. At this time, there’s absolutely no route to the US market for CBD derived from Canadian-grown hemp. Having said that, with the experience that Canopy Development has developed through the whole product cycle, from breeding to extraction to formulation, the business is well positioned to help and enable American farmers to move their hemp to market and positions the company as a professional partner in the United States.

STRATEGIC IP PORTFOLIO & CASH POSITION

Canopy Growth acquired a portfolio of hemp-specific IP as it acquired Colorado-based ebbu Inc. in November 2018. With more than 40 cannabis-related patent applications filed representing over 1500 creations, the ebbu science group has become a worldwide leader in data-driven, lab-tested cannabinoid research.

In addition to significant IP and patents registered, Canopy Growth’s cash position continues to set it apart. The business is ready to invest in the infrastructure necessary to deliver multiple CBD products to market at scale. With a substantial cash position, it can do this without diluting its shareholders.

Canopy Growth has developed broad product offerings specific to CBD across multiple verticals and will be publicly unveiling brands and product assortment in the first half of calendar 2019.

Here’s to Future (Hemp) Growth.

Canopy Development is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth gives the world’s only medically approved vaporizers throughout the business’s subsidiary, Storz & Bickel GMbH & Co.. KG. From product and process innovation to promote implementation, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The business has operations in 13 countries across five continents. The business is proudly dedicated to educating healthcare practitioners, conducting strong clinical study, and furthering the public’s understanding of cannabis, and through its partially owned subsidiary, Canopy Health Innovations (“Canopy Health”), has committed millions of dollars toward cutting edge, commercializable research and IP development. Canopy Development functions with the Beckley Foundation and has established Beckley Canopy Therapeutics to research and develop clinically validated cannabis-based medicines, with a strong focus on intellectual property protection. Canopy Growth acquired assets of leading hemp research company, ebbu, Inc. (“ebbu”). Intellectual Property (“IP”) and R&D improvements achieved by ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capacities. Through partially owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of investments that are stable in the sector. From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Development has established partnerships with leading sector names such as cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, Battelle, the world’s largest nonprofit research and development organization, and Fortune 500 alcohol pioneer Constellation Brands, to mention but a few. Canopy Development operates ten licensed cannabis production websites with over 4.3 million square feet of production capacity, including over 500,000 square feet of GMP certified production space. The business operates Tweed retail shops in Newfoundland and Manitoba and has entered into supply agreements with each Canadian province and territory. For more information visit www.canopygrowth.com

Published at Tue, 08 Jan 2019 16:15:59 +0000

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