Canadian cannabis producer Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) accelerated its expansion into the US hemp market Thursday with the acquisition of AgriNextUSA for an undisclosed amount of money.
According to the press release, AgriNextUSA has been at the forefront of hemp advocacy and building a vibrant hemp sector in the US. This acquisition will advance Canopy Growth's entry into key US jurisdictions.
Hemp Pioneer Geoff Whaling Joining Canopy Growth Team
The deal will see AgriNextUSA CEO Geoff Whaling, who is considered a pioneer and leading advocate in the hemp industry, join the Canopy Growth team as a strategic adviser. The vision proposed by AgriNextUSA involves the creation of Hemp Industrial Parks, a large-scale production facility focused on hemp extraction and product manufacturing that is similar to the one CGC is building in the Southern Tier of New York State.
As hemp is all the rage right now, one can only imagine that Canopy Growth's acquisition of AgriNextUSA will benefit CGC stock down the line.
Canopy Growth has committed to investing $100–$150 million USD into AgriNextUSA. Canopy's investment will help to create jobs and will increase its capacity to produce high-quality CBD products.
Hemp Industry Potential
The hemp industry has grown significantly since the passing of the US Farm Bill and has the potential to disrupt a number of prominent industries such as advanced materials, cosmetics, energy, food and protein production, fiber and textiles, and the health and wellness sectors. CGC stock has made significant investments and acquisitions to cement its spot in the growing industry.
“Hemp has the potential to become a multi billion-dollar industry that will boost the American economy for generations to come,” said CGC's newly appointed strategic adviser Geoff Whaling. “By working with Canopy Growth, we will turn our vision into a reality, one that helps American farmers, small and medium-sized business owners, and the next cohort of innovators who see the extraordinary potential that hemp has to offer.”
What do you think about Canopy Growth's acquisition of AgriNextUSA? Do you think it will help CGC stock to grow?
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