Canopy Growth Corp. 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.
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.
Company spokesperson Caitlin O'Hara says the company has an option for an additional 1.7 million square feet in B.C. as well for a total of three million square feet.
She says the company currently has one million square feet of greenhouse space in Niagara-on-the-Lake, Ontario.
A previous version of this story included a tweet with incorrect information from Canopy Growth Corp. The previous version reported the company would have a total of 4.3 million square feet of greenhouse space with the acquisition of greenhouse space in B.C., when in fact it would have four million.Oct 11, 2017 11:39 AM PT