Canopy Growth stock jumps on new cultivation license, expanded partnership

Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) received a cannabis cultivation license for its facility in Fredericton, New Brunswick, the company announced Monday. The medical cannabis producer expects to cultivate more than 5,000 kg of cannabis per year at the $40 million facility with the first harvest set to hit the market within six months.

Investors liked what they heard, sending the stock up 2% before the bell to $44.38.

READ: Canopy Growth extends reach in US with acquisition of hemp company AgriNextUSA

The Smith Falls, Ontario-based company also bolstered its ongoing partnership with Los Angeles cannabis brand OG DNA Genetics. The two companies agreed to expand their current deal on Monday, allowing Canopy to bring OG’s cannabis strains to the European markets.

Canopy Growth and OG DNA first paired up in 2015 in Canada and later expanded to Jamaica as well. Their European deal is scheduled to last through 2024.

Contact Andrew Kessel at [email protected]

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Story by ProactiveInvestors