Canopy Growth has formed a joint venture to develop a 1.3-million-square-foot marijuana greenhouse in British Columbia.
The agreement, announced in a news release, nearly doubles the Ontario company’s total greenhouse and indoor production footprint to 3.2 million square feet across six provinces.
Canopy – Canada’s largest licensed medical marijuana producer, with a market capitalization of 2.2 billion Canadian dollars ($1.76 billion) – has an option to develop a 1.7-million square-foot greenhouse at a second location in the province.
Canopy has teamed with a greenhouse operator it did not identify in the release. The greenhouse company will own one-third of the new company, BC Tweed Joint Venture Inc. And Canopy will contribute CA$20 million to fund BC Tweed.
Applications to produce cannabis have been submitted for both sites.
Subject to Health Canada and other regulatory approvals, Canopy said that with “a bit of luck” product will be available from the first site when recreational marijuana is expected to be legalized on July 1, 2018.
When certain milestones are met, the partner will receive 310,316 shares of Canopy and a further CA$2.75 million of shares.
BC Tweed has agreed to lease the initial greenhouse facility from an affiliate of the partner, and has an option to acquire the property.
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