TORONTO (Reuters) – Canada’s biggest licensed producer of medical marijuana has bought land next to its greenhouse production site that will allow it to more than double the total volume of cannabis it can grow, its chief executive said on Thursday.
Canopy Growth Corp’s (WEED.TO) Tweed Farms Inc subsidiary expects to spend at least C$25 million ($21 million) to upgrade the property, a flower farm it purchased for about C$9 million in cash and equity, with work including the installation of security cameras and fences due to start in October.
With Canada less than a year away from the planned legalization of marijuana for recreational use, licensed producers are rushing to try to fill an expected shortfall in supply.
“This is a very big leap, in terms of our output, our capacity, our footprint,” Bruce Linton, Canopy Growth’s CEO, said in an interview.
Canopy Growth is currently licensed to produce 31,000 kilograms of marijuana and related products, and aims to triple that by July next year, the deadline the federal government has given provinces to make pot legal for all.
The deal gives Canopy 450,000 square feet of greenhouses that can be immediately added to its existing 350,000 square foot facility in Niagara-on-the-Lake, Ontario. It is also building an additional 200,000 square feet of greenhouse capacity on its existing property. [Read more at Reuters]