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Canopy Growth Gets License for Outdoor Facility in Saskatchewan

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Updated

Capacity update

Early on June 24, Canopy Growth (WEED) (CGC) announced that Health Canada gave the company a new license to grow cannabis at  its outdoor facility in Saskatchewan, Canada, which has a capacity of about seven million square feet (or about 160 acres). This facility will add to the company’s 4,000 acres of existing capacity, which the company said will help in cultivating high margin products.

Some of the high margin products that Canopy Growth is planning to release include chocolates, vapes, and concentrates. In its press release this morning, the company appeared to be betting big on the chocolate market, as the company has a production capacity of 850,000 chocolates per month. The company also has scaled up to produce about 5 million beverages monthly. Both the chocolate and beverage production facilities are awaiting licenses from Health Canada. Note that cannabis-infused edibles and beverages aren’t legal in Canada yet.

The company also provided an update on its vape production facility, which has the monthly capacity to produce two million vapes. Canopy Growth will also have the capacity to produce 800,000 pre-rolled joints and is expanding its facility to produce about 15 million soft gels per month.

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With these developments, Canopy Growth expects to generate incremental revenues by Q3 and Q4 provided it receives the required licenses and edibles and other cannabis formats are federally legalized in Canada. Canopy Growth opened almost flat early this morning, while the ETFMG Alternative Harvest ETF (MJ) was trading slightly lower by 0.22%, and Aurora Cannabis (ACB) was trading lower by 0.4%.

Also read Why Were Cannabis Stocks Mixed Last Week?

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