Three million sq. ft. of marijuana growing capacity in B.C.

Canopy Growth is set to develop up to 3M sq. ft. of growing capacity in B.C.

Canopy Growth Corp. (TSX:WEED) says it will develop up to three million square feet of greenhouse growing capacity in British Columbia, more than doubling Canada’s biggest licensed marijuana producer’s production footprint.

The company said in a statement that it has entered into a definitive joint venture agreement with a large-scale greenhouse operator where it will be a majority shareholder of BC Tweed Joint Venture Inc., a new company.

Canopy Growth CEO Bruce Linton says the greenhouses currently grow peppers and the company will spend tens of millions of dollars to transform them to grow cannabis, the majority of which will be sold domestically.

The company will spend $20 million to develop 1.3 million square feet and hopes to have product available as soon as July 1 next year when recreational marijuana sales are set to be legalized.

Related: ‘Exploding’ marijuana industry threatens B.C. farmland

The company will lease the facility from the partner’s affiliate and will have the option to acquire it. The undisclosed partner will receive Canopy shares as consideration.

The deal expands Canopy Growth’s greenhouse production footprint to about 2.3 million square feet.

BC Tweed will also have the exclusive option to develop another 1.7 million square feet of existing greenhouse infrastructure.

Canopy started off growing indoors at a converted chocolate factory in Smiths Falls, Ont. but it has joined many others in adding greenhouse spaces, which facilitate lower cost production. It also has about 900,000 square feet of indoor production capacity.

The expansion comes as reports suggest a looming medical and recreational marijuana shortage following legalization. Licensed producers are scrambling to add production space as the country ramps up to supply a legal recreational market.

Linton said the growth comes amidst substantial demand and the company’s promises that it will fulfil any orders from any medical marijuana patients with Tweed or other Canopy Growth brands before recreational use orders.

Related: Canadians favour marijuana legalization

The supply agreement covers two years, including four million grams of cannabis and derivative products in the first year, according to a company statement.

Aleksandra Sagan, The Canadian Press

Just Posted

City of Terrace welcomes new economic development manager

Deklan Corstanje makes the switch to city hall from RDKS

Climate change, economy and reconciliation take centre stage at Oct. 15 All-Candidates Forum

Six of the eight candidates were in attendance at the Smithers event

RDKS issues planned Boil Water Notice for Thornhill area

Due to roundabout construction, residents and businesses are advised to boil water before consuming

Skeena Voices | A legend off the ice

Joe Pelletier’s love for hockey led him to become a sports writer

Historic downtown tree turned into a work of art

Local artist carves a logger into wooden stump

Scheer, Trudeau, Singh haggle over potential minority government outcome

If you believe the polls, it appears the Liberals and Conservatives are neck-and-neck

Canucks beat Stanley Cup champs 4-3 in a shootout

Leivo nets winner, Vancouver dumps St. Louis for fourth straight win

‘The more you test, the more you find’: Beef recalls a sign of success, experts say

Despite appearances, experts say a recent rise in major recalls is not a sign of food supply problems

Japanese buyer expands wood pellet contract with B.C.’s Pinnacle

Mitsui and Co. increases contract with Interior energy producer

ELECTION 2019: Have Justin Trudeau’s Liberals really cut middle-class taxes?

Conservative Andrew Scheer vows to cut bottom bracket, NDP’s Jagmeet Singh targets wealth tax

B.C. RCMP officer suing the force for malicious prosecution

Cpl. Tammy Hollingsworth cleared of wrongdoing after misconduct hearing

Talk to your kids about vaping, B.C.’s top doctor says

B.C. health officials have discovered the first vaping-related illness in the province

Saik’uz and Stellat’en First Nations court battle against RioTinto Alcan to start next week

Saik’uz and Stellat’en First Nations are taking Rio Tinto Alcan to court over their functioning of the Kenney Dam that affects the Nechako River

Alberta truck convoy plans counter-protest at climate rally with Greta Thunberg

United We Roll organizer says similar protest planned for Swedish teen’s event in Edmonton

Most Read