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Canopy Growth Rises on News of Extraction Agreement

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Canopy Growth’s new agreement

On March 20, Canopy Growth (CGC) (WEED) announced that it had entered into a multiyear extraction and processing agreement with HollyWeed North Cannabis.

HollyWeed North produces pharmaceutical products and is based in British Columbia, Canada.

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The details

Under this agreement, Canopy Growth will provide HollyWeed with dried cannabis, which HollyWeed will then process into cannabis extracts, such as oil and resin. Canopy Growth will then use these extracts in its own line of products, which it’s scheduled to release later this year. According to Canopy Growth, this agreement will also help it expand in British Columbia.

The agreement adds to Canopy Growth’s capacity. The company, along with its peers (HMMJ) Aurora Cannabis (ACB), Aphria (APHA), and Tilray (TLRY), is in the race to capture a bigger piece of the cannabis market through value-added products. Canopy Growth was trading at a rise of almost 4.4% as of 11:30 AM EDT on March 20.

Canopy Growth does not believe that dried cannabis will be commoditized. Read on to find out what Canopy Growth’s CEO, Bruce Linton, has said in this regard.

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