Canopy Growth (TSX: WEED) (NYSE: CGC) has received a license from Health Canada for its KeyLeaf Life Sciences facility in Saskatoon, Saskatchewan.
The company now operates three extraction sites: The Smiths Falls site, the BC Tweed extraction site, and the KeyLeaf facility.
These facilities will support the company’s indoor, greenhouse, and outdoor cannabis and hemp growing operations on the one side, and its beverages, vapes, softgels and edibles infrastructure on the other side.
Canopy said that the licensing of these facilities brings it one major step closer to completing its Canadian build-out, and also represents a blueprint model for international expansion as global market demand dictates.
Canopy KeyLeaf Facility
Canopy recently retrofitted the now fully–licensed KeyLeaf facility in Saskatchewan. The facility is expected to be online in the fall of 2019 and has the capacity to extract up to 5,000 kilograms of hemp or cannabis biomass per day.
The application for the license was submitted under KeyLeaf’s previous name POS Management Corp. and will be updated in due course.
The newly-licensed extraction platform is located in close proximity to Canopy’s large-scale outdoor hemp and cannabis grow operations. The additional capacity is expected to help the company increase production efficiency and reduce operational costs for products set to be rolled out in the Canadian recreational and medical markets at the end of 2019.
“This license will ensure we have the supply of extraction inputs for the medical, CBD, and recreational markets, especially the next generation of value-add, high margin cannabis products here in Canada,” Canopy CEO Mark Zekulin stated.