CGC stock temporarily climbed after Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) received a new cultivation license from Health Canada for its Fredericton, New Brunswick facility, which will produce 5,000 kilograms of cannabis each year.
The NB facility was developed in collaboration with Canopy Rivers Inc. (TSXV:RIV) and is operating under Canopy’s flagship Tweed brand. More than 130 jobs will be created with this facility, including lab supervisors, technologists, growers, post-harvest crews, and quality assurance experts. The first harvests from the facility are expected to be ready for market within six months.
New Brunswick is “Excellent Place to Do Business”
Canopy Growth’s facility expansion is in line with the province’s desire to support businesses that are conducive to the safe and competitive production, distribution, and sale of medical and adult-use cannabis and cannabis-related products.
The cannabis industry is taking off in New Brunswick and government body Opportunities NB sees cannabis as a priority sector that will lead to the creation of thousands of jobs in the coming years. Based on averaged industry forecasts, it expects cannabis sales in New Brunswick to climb to $150 million annually. Additionally, Ancillary markets will add another $440 million.
Strategically speaking, therefore, the presence of Canopy Growth’s facility and the newly granted license here will be beneficial to CGC stock in the long run.
“New Brunswick has emerged as a leader in the legal cannabis sector and the province is an excellent place to do business,” commented Canopy Growth’s co-CEO Bruce Linton, co-CEO. “We will leverage our existing operational expertise to ensure we support the needs of our customers while making a meaningful contribution to the local economy primarily through new job creation.”
Canopy Growth’s facility is expected to become one of Atlantic Canada’s leading growth operations, with the capacity to supply that market with steady, reliable and high-quality cannabis products.
CGC Stock Up in 2019
The announcement of the new Health Canada license for Canopy Growth gave CGC stock a $0.16 USD boost on an otherwise quiet Monday morning in the cannabis sector, before the stock dropped back down to $44.31 USD by 1 pm EST.
Despite this slight downturn, CGC stock has increased by over $15 USD since the beginning of 2019 as the company continues to expand its reach across North America with strategic acquisitions.
Are you excited about Canopy Growth’s new cultivation license?
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