Supply agreement with Sunniva
With recreational cannabis set to become legal in Canada in mid-2018, Canopy Growth (WEED) continued to make developments to meet the anticipated demand with yet another announcement last week. On February 21, Canopy Growth signed a definitive agreement with Sunniva to purchase up to 90 tons of dried cannabis over two years.
The cannabis purchased from Sunniva is planned to be distributed through Canopy Growth’s distribution network. In a press release, Canopy Growth president Mark Zekulin stated that “with partners like Sunniva, we are well positioned to capture market share through robust supply channels.”
Canopy Growth receives license
On February 20, 2018, Canopy Growth announced that it had received a cultivation license for one of its two sites in Aldergrove, British Columbia, under its BC Tweed Joint Venture.
The site’s total space will cover a total of 1.7 million square feet for cultivating cannabis, with the first licensed site spreading over 400,000 square feet. The company stated that cannabis plants would grow on this site, and mature plants would be transferred to the remaining 1.3 million square feet for flowering and harvesting. For more, read Why Cannabis Stock Canopy Growth Surged 12% Yesterday
Aurora Cannabis appoints senior vice president
As the cannabis sector (HMLSF) heats up, companies such as Canopy Growth and MedReleaf (MEDFF) have intensified their focus on mergers and acquisitions, with Aurora Cannabis (ACB)(ACBFF) even creating a new position for this purpose. On February 22, 2018, Aurora Cannabis announced the appointment of André Jérôme to the newly created position of senior vice president of business integration. According to the company’s press release, “Mr. Jérôme will be responsible for the integration of acquisitions, as well as for the identification of potential synergies across existing subsidiaries and joint venture partners.”