The New York State has granted Canopy Growth Corp. (NYSE: CGC) a license to process and produce hemp. The company plans to invest between $100 million and $150 to establish a hemp industrial park somewhere in the state.
Canopy is happy with the current New York political leadership that supports the cannabis business. Canopy Co-CEO Bruce Linton said that they “see an opportunity” in New York “to create products that improve people’s lives. He believes that “in the process” they “will create jobs in an exciting, highly profitable new industry.”
Canopy Hemp Industrial Park
Within the planned hemp industrial park, Canopy plans to establish large-scale production capabilities focused on hemp extraction and product manufacturing within the U.S.
Subject to the board approval of a specific site, Canopy intends to invest between $100 million and $150 million in its New York operations.
Canopy will be the anchor business in the hemp industrial park where third parties will be able to “join an innovative hemp ecosystem focused on every potential application of the hemp crop, from fiber, to seed, to cannabinoids,” according to Canopy.
Canopy, a large-scale extractor with specific experience producing standardized medical products, has been granted a license by New York State to process hemp for various applications. Its production processes have achieved GMP certification, the global standard for pharmaceutical production, at its Canadian headquarters in Smiths Falls, Ontario.
Canopy plans to source hemp exclusively from local farmers for its American operations once up and running.
Location of Canopy Hemp Industrial Park
Canopy is now evaluating a number of sites in the Southern Tier of New York, which will become one of the company’s first extraction and processing facilities outside Canada.
“Canopy Growth’s $100-$150 million investment in the Southern Tier is a true win-win – for Canopy Growth, who will be positioned at the forefront of Upstate New York’s industrial hemp revolution, and for the Southern Tier’s economy and farmers, which will receive a major shot in the arm in new good-paying jobs,” Senator Charles Schumer said in a statement.
The company is expected to announce the specific hemp industrial park location within 100 days.
