On March 20, Canopy Growth (WEED) (CGC) announced that it signed a multiyear extraction agreement with HollyWeed. The company is back in the news with yet another event. Early on March 21, Canopy Growth announced that it acquired AgriNextUSA, which conducts its business in the hemp segment.
How the acquisition help Canopy Growth?
With the acquisition, Canopy Growth aims to reach deeper into the US market. Recently, the US market legalized hemp farming at the federal level. AgriNextUSA’s CEO, Geoff Whaling, will also be the strategic adviser for Canopy Growth USA.
The US market is key to companies (HMMJ) including Aurora Cannabis (ACB), Tilray (TLRY), and Aphria (APHA). The US market is much larger than the Canadian market. The US market will be the next growth driver for these Canadian cannabis companies. Canopy Growth’s CEO, Bruce Linton, said, “The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential.”
Canopy Growth also has another hemp subsidiary in the United States—ebbu. Currently, ebbu develops adult-use cannabis-based products geared toward providing users with certain sensations or experiences. Some effects of cannabis-related drugs listed on ebbu’s website include alertness, creativity, relaxation, and happiness. The company also develops medical products targeting anxiety, pain, sleep disorders, post-traumatic stress disorder, and depression.
Next, we’ll discuss which products Canopy Growth plans to introduce through the new acquisition.