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

Search continues near Ashcroft for missing Prince George woman

Jenny Lynn Larocque’s vehicle and dog were found in Venables Valley, but there is no sign of her

Lieutenant-Governor visits Cache Creek Elementary School

Judith Guichon spoke to students about Canada’s history, its government, and her role.

All are welcome at annual Legion veterans’ dinner

The event honours vets, as well as long-standing members of the Ashcroft Legion.

New ticket system for WRAPS theatre productions

Tickets will ensure patrons get the seats they want, and help the organization cover costs.

Community Helping Hands helps sort things out

The list explains the differences between, and needs of, four local groups that help those in need.

VIDEO: Sears liquidation sales continue across B.C.

Sales are expected to continue into the New Year

Silver Creek reacts after remains found, man arrested

Neighbours of property where remains were found say man arrested was sweet and polite

VIDEO: Oprah Winfrey and a celebrities attend ‘B.C. Miracle Concert’

Fundraiser featured Foster, Steven Tyler, The Tenors, Matteo Bocelli, Laura Bretan, Carly Rae Jepsen

Human remains found at Silver Creek property

RCMP have been searching the property in the 2200 block of Salmon River Road for the past three days

New B.C. acute care centre opens for young patients, expectant mothers

Facility aims to make B.C. Children’s Hospital visits more comfortable

Auntie Says: Don’t bring your dope to my house

Don’t judge me and I won’t judge you, but if you try and smoke at my house, you’ll be asked to leave

Police officer hit by car, stabbed in Edmonton attack back on job

Const. Mike Chernyk, 48, returned to work Thursday

UBC medical students learn to care for Indigenous people

Students in health-related studies to take course, workshop to help better serve Aboriginal people

Dorsett has 2 goals, assist in Canucks’ 4-2 win over Sabres

‘It was a real good hockey game by our group,’ Canucks coach Travis Green said.

Most Read