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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Ucluelet’s Terrace Beach Resort is for sale

The commercial offering of 21 suites and cabins was recently listed for $4,495,000

Young tourist caught untying boats from Ucluelet dock

“He was just untying the boats and watching them float away,” said Harbour Master Kevin Cortes.

Feds announce $8.3M to deal with ‘ghost’ fishing gear in B.C. waters

Ghost gear accounts for up to 70 per cent of all macro-plastics in the ocean by weight

Ucluelet RCMP warns of scammers impersonating police

“Police will never demand payment of any kind to get rid of an arrest warrant.”

B.C. identifies 20 new COVID-19 cases, travellers specified in count

Pandemic total 3,028 cases, 51 people from outside Canada

Campaign aims to raise $50K for young family of deceased Vancouver Island skydiver

James Smith, 34, died July 5 following incident in Nanoose Bay

Survey, hotline launched amid probe into racist blood-alcohol guessing game at B.C. hospital

Mary Ellen Turpel-Lafond has been appointed to lead an investigation by Health Minister Adrian Dix

Canadian policing organization calls for decriminalization of simple illicit drug possession

Canadian Association of Chiefs of Police want policing focus of opioid crisis to be replaced with a health one

B.C. ports part of data integration project to protect marine ecosystems

The $1.2 M federally funded program will draw crucial baseline data from Canada’s three coastlines

Filing deadline in RCMP sexual-harassment class-action extended due to COVID-19

Plaintiffs now have until January 2021 to submit claims for up to $222,000

Jamie Bacon pleads guilty to charge in Surrey Six case

The plea brings an end to a complex legal case that has spanned more than a decade

Hefty undeclared driver charges piling up, ICBC warns customers

Average extra penalty $2,971 after an at-fault accident

RCMP disarm man experiencing mental health crisis

The male pulled a knife on officers and then held it to his own throat expressing a desire to die

Most Read