Canopy Growth Corp (TSX: WEED) (NYSE: CGC) announced this morning that it had closed the acquisition of POS Bio-Sciences, an extractor based in Saskatoon, Saskatchewan. Recently renamed to KeyLeaf Life Sciences, the company has been under Canopy’s accounting control since last fall and was included as part of the latest consolidated financial statements.
The assets of KeyLeaf consist of a Saskatoon, Saskatchewan extraction facility capable of producing 5,000 KG of biomass daily, a Batavia, Illinois extraction facility, and any science the firm has previously developed.
The acquisition of the Saskatoon based operator brings the final operational piece to Canopy’s extraction strategy within Saskatchewan. Canopy Growth first entered the province in 2017, when it purchased late-stage ACMPR applicant rTrees, later renamed Tweed Grasslands. Based in Yorkton, Saskatchewan, the Tweed Grasslands facility has been converted solely to commercial seed production for the Hagen, SK, and St. Louis, SK, grow operations.
Later that same year, Canopy acquired Green Hemp Industries of Hagen, SK. The asset consisted of 300 acres of hemp production, with the ability to scale to 2,200 acres should the demand exist. Combined, last year the firm harvested over 4,000 acres of hemp across all of its Canadian and US-based assets.
Then, earlier this week it was announced that Canopy Growth has received a license to produce cannabis outdoors in Northern Saskatchewan. The site is based near St. Louis, Saskatchewan, a short fifteen minute drive from its Hagen, Sk hemp operations.
While the company states that it received a license to cultivate on 160 acres (647,497 square meters) of land, Health Canada stated only 524,000 square meters of production had been approved cumulatively. This discrepancy has thus prompted questions of how long Canopy has had the outdoor license for.
From seed to extraction, Saskatchewan will consist of the centerpiece to Canopy Growth’s strategy for what’s been labelled as cannabis legalization 2.0. Upon extraction, the product will be shipped to the firms Smith Falls, Ontario headquarters where the extract will be processed into a number of cannabis products.
The company has heavily invested in manufacturing processes at the facility, with the capacity to produce 800,000 chocolates, 2 million vapes, 15 million softgels and bottle 5 million beverages monthly. Much of which is contingent on the operational success of Saskatchewan.
Information for this briefing was found via Sedar and Canopy Growth. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
