Canopy Growth Makes Big Move Into U.S. Hemp Industry
Canopy Growth is an unquestioned leader in the global cannabis industry. The biggest producer, in Canada, Canopy exports around the world and its stock has had a strong showing on the New York Stock Exchange. Constellation Brands, the owner of Corona beer and Robert Mondavi wine, sees the value of the company, investing billions in the cannabis giant. Now, Canopy Growth is making a major move into the hemp industry in the United States, with the purchase of Colorado-based ebbu, Inc., as it announced in a press release today:
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NYSE: CGC) today announced that it has entered into an agreement to acquire the assets of ebbu, Inc. (“ebbu”), an Evergreen, Colorado-based hemp research leader. The transaction will complement and accelerate multiple core verticals operating under Canopy Growth’s group of companies.
Intellectual Property (“IP”) and R&D advancements achieved by ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. In addition, ebbu’s IP portfolio will contribute to the clinical formulations program being executed by Canopy Health Innovations, a wholly owned subsidiary of the Company. Canopy Growth operates a rapidly emerging, field-scale hemp operation based in Saskatchewan and by applying ebbu’s IP, the Company has the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces.
“Beyond the technological edge this transaction provides, we are pursuing this acquisition because Canopy shares ebbu’s core ethos of building consumer trust,” said Mark Zekulin, Co-CEO & President, Canopy Growth. “We collectively believe consumer trust is achieved by driving the scientific agenda needed to build predictable, repeatable outcomes and layering on brand power.”
Canopy Growth is showing great initiative in its global moves, and this purchase is likely a good move for the company as it is diversifying into another burgeoning industry. As the United States moves towards ending prohibition, like our neighbor to the north will on October 17th, hemp-based CBD is a fast-growing market and this maneuver gives Canopy a major foothold in the United States, in one a pioneering state. The future of the cannabis and hemp industries are uncertain, but are certainly looking bright, and Canopy Growth is poised to help lead the way.
Learn the latest about the cannabis and hemp industries and network with top investors and professionals at the upcoming International Cannabis Business Conference in San Francisco on February 7-8, 2019. Be sure to purchase your early-bird tickets by January 18th to save! After San Francisco, the ICBC will be heading to Barcelona and then Berlin.