SMITHS FALLS, ON, June 24, 2017 /CNW/ - Earlier this week,
Canopy Growth Corporation (TSX: WEED) ("Canopy Growth" or the
"Company") provided a global operational update to keep
shareholders and other stakeholders apprised of operational
developments as they relate to international milestones and
innovative new product types. With a rapidly growing medical market
in Canada, increasing
international demand profiles and the fast-approaching move towards
an adult-use access market in Canada, a reliable, diversified and
exponentially larger footprint will be essential.
With a track record of building and operating the largest sites
in Canada and already overseeing
the largest diversified network of sites, including over 500,000
square feet of GMP-certified indoor and greenhouse facilities,
Canopy Growth is pleased to announce the first in a series of
capacity announcements and expansion plans.
THE HIGHLIGHTS (FROM WEST TO EAST):
- Agreement with Goldman Holdings, Ltd. ("Goldman Group")
pursuant to previously announced MOU to begin build-out and
licensing process for a 160,000 square foot indoor facility in
Edmonton, Alberta.
- Cultivation license obtained at the Yorkton, Saskatchewan-based Tweed Grasslands
(rTrees Producers Limited or "rTrees") facility.
- Retrofit and expansion at the Mettrum Bowmanville, Ontario facility now completed
and licensed, adding 200% more production capacity at that
facility.
- The previously announced supply agreement and sale of Mettrum
(Bennett North) Ltd. ("Bennett
North") to Cannabis Care Canada, backed by LiUNA, North America's single largest construction
union with over 100,000 Canadian members, is progressing with
closing anticipated shortly.
- Expansion at our flagship 1 Hershey Drive Campus in
Smiths Falls continues with
licensing of 33% more flowering space, licensed and launched
production of industrial scale CO2 super-critical extraction, and
construction is underway in the remaining 300,000 square foot North
Campus area.
- Entered into an agreement to acquire a 100,000 sq. ft. facility
in Fredericton, New Brunswick with
the intention of launching a Tweed facility for indoor production
in New Brunswick.
Our ongoing mission is to build the brands and products that
people want, and to support those brands with the necessary
capacity footprint to satisfy all the customers who trust our
family of companies for their cannabis. Canopy Growth is committed
to prioritizing patient access over recreational sales but that
doesn't change its plans to pursue recreational markets in
Canada or any other federally
legal jurisdiction.
Through its subsidiaries, Canopy Growth has overseen hundreds of
harvests across multiple facilities. Management believes it has an
unparalleled ability to forecast production capacity in the
industry. As we release more information on our expansion plans, we
will begin to paint the picture of how our footprint will position
us for future global demand.
ADDITIONAL DETAILS
Smiths Falls Campus – Main
Building: The 40 acre Smiths Falls Campus at 1 Hershey Drive is
the Company's largest indoor location and will continue to act as
the strategic hub for innovation, consumer shipping, and
multi-format value-add conversion activities. But we still do a lot
of growing there and are pleased to announce the recent
licensing of 33% more flowering space.
Additionally, to support increased demand across all oil-based
products, a custom-built industrial extraction system is now
commissioned and operational in the Smiths Falls facility. The new system is
capable of producing as much oil in approximately 1 month as the
Company has produced since extraction activities commenced in
November 2015. This is a major step
forward and will lead to increased product availability across
multiple brands in the short term once fully ramped up.
Smiths Falls Campus – North Campus: Another 300,000
square feet of production space is currently in the early stages of
demolition and construction at the North Campus area of our site.
The future space, subject to Health Canada approval, is expected to
support additional growing and vault capacity, production of value
add products for the evolving adult access market, when permitted,
office administration space and a return of the famous Visitor
Centre at the Smiths Falls Hershey Drive campus.
Tweed Grasslands: Canopy Growth is pleased to announce
that Tweed Grasslands (rTrees) in Yorkton-Saskatchewan has become its
sixth licensed production site, having received its cultivation
license. Production will begin next month to support increased
demand from medical patients around the world. The Grasslands
facility will be fully operational by early summer 2018.
New Edmonton Facility Planned: Canopy Growth has
leveraged a previously announced MOU with Goldman Group to
expand its footprint into Edmonton,
Alberta with a 160,000 square foot facility that, per
the terms of the MOU, will be leased to Canopy Growth by Goldman
Group with an option to purchase the facility at the end of each
5-year quarter of the 20-year lease. The transaction is expected to
close August 1, with the existing
tenants vacating October 1, 2017. As
always, licensing is contingent upon Health Canada and municipal
approvals.
Main Bowmanville Facility: The Mettrum Bowmanville
facility has received approval for additional flowering rooms, a
200% increase over current production capabilities. These rooms
are coming online in tandem with the completion of retrofit work on
the existing rooms following the acquisition of Mettrum by Canopy
Growth.
Fredericton, New
Brunswick: Canopy Growth has entered into an agreement
to acquire a 100,000 sq. ft. facility in Fredericton, New Brunswick with the intention
of launching a Tweed facility for indoor production in New Brunswick.
Vert Cannabis Drummondville Site: The Vert Cannabis
application in St. Lucien, Quebec
continues to advance through the Health Canada application process
and is ready for inspection.
Mettrum (Bennett North):
Per the previously announced transaction with Cannabis Care Canada
Inc. ("CCC") outlining the sale of Mettrum (Bennett North) to CCC, the transaction is
progressing and is expected to close shortly. The announcement was
originally made prior to Canopy Growth acquiring Mettrum Health
Corp. and has proceeded as planned following that acquisition.
CCC is financially backed by Laborers International Union of
North America ("LiUNA"),
North America's single largest
construction union with over 100,000 Canadian members. Under the
terms of the agreement, CCC will pay $7
million in cash to acquire Bennett
North and enter into a three-year Supply Agreement with CGC.
As part of the transaction, CCC will assume all outstanding
obligations associated with Bennett
North.
Canopy Growth subsidiaries, working in conjunction with CCC,
will begin working directly with LiUNA local chapters in the near
future to support members' needs.
Scarborough Sites: Canopy
Growth continues to explore partnership opportunities for the
original Bedrocan Canada distribution-only licensed site, and
production continues at the main Scarborough location.
Here's to (a lot of) Future Growth (across Canada).
ABOUT CANOPY GROWTH CORPORATION
Canopy Growth is a
world-leading diversified cannabis company, offering distinct
brands and curated cannabis varieties in dried, oil and capsule
forms. Through its wholly‑owned subsidiaries, Canopy Growth
operates numerous state-of-the-art production facilities with over
half a million square feet of GMP-certified indoor and greenhouse
production capacity, all to an unparalleled level of quality
assurance procedures and testing. Canopy Growth has established
partnerships with leading sector names in Canada and abroad, with interests and
operations spanning four continents. The Company is proudly
dedicated to educating healthcare practitioners, providing
consistent access to high quality cannabis products, conducting
robust clinical research, and furthering the public's understanding
of cannabis. For more information visit www.canopygrowth.com.
NOTICE REGARDING FORWARD LOOKING STATEMENTS
This news
release contains forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"estimates", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Canopy Growth Corporation, Tweed Inc., Tweed Farms
Inc., Mettrum Health Corp., or Bedrocan Canada Inc. to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Examples of such statements include future operational
and production capacity, the impact of enhanced infrastructure and
production capabilities, and forecasted available product
selection. The forward-looking statements included in this news
release are made as of the date of this news release and Canopy
Growth Corp. does not undertake an obligation to publicly update
such forward-looking statements to reflect new information,
subsequent events or otherwise unless required by applicable
securities legislation.
Neither the TSX Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Canopy Growth Corporation