A Canadian cannabis licensed producer (LP) is moving forward with US operations, setting a new precedent after the opening of the hemp market.

After the approval of a new US$867-billion farm bill in the US, hemp and its derivatives became legal. Canopy Growth (NYSE:CGC,TSX:WEED) will now create a division in the state of New York after obtaining a license to process and produce hemp.

On Tuesday (January 11), Canopy announced it will deploy a strategy worth between US$100 and US$150 million for its new production plans.

“In New York we see an opportunity to create products that improve people’s lives,” Bruce Linton, chairman and co-CEO of Canopy Growth, said in a statement.

While they suffered an initial decrease, shares of Canopy in New York were trading at a high, with a 2.66-percent increase in value as of 1:10 p.m. EST on Tuesday. In Toronto, the company was up just over 3 percent in value after 1:30 p.m. EST.

Canopy will be able to leverage its capital infusion from a C$5-billion investment deal with Constellation Brands (NYSE:STZ).

US Senate Minority Leader Chuck Schumer said Canopy’s license approval is a “win-win” situation for the producer and the New York industrial hemp market.

“I’m so pleased that Canopy Growth is joining my efforts to make the Southern Tier the Silicon Valley of industrial hemp production and research and will keep pushing to see industrial hemp become a true cash crop in the region,” Schumer said.

The senator added that the decision by Canopy will be a “major shot in the arm” for farmers in the state.

Canopy announced it will give out the location of its new facility in the state over the next 100 days, and has vowed to only source hemp from American farmers.

Martin Landry, a GMP Securities analyst covering the cannabis space, raised his price target for Canopy over the next 12 months to C$70 following the announcement, according to Yahoo Finance.

“[Canopy’s] shares could receive a lift from investors looking for exposure to the US cannabis market, given the company is currently the only cannabis company with US operations listed on a major US stock exchange,” Landry wrote in a note to investors.

During an investing panel at the Lift (TSXV:LIFT) & Co. cannabis expo in Vancouver, Neal Gilmer, cannabis analyst with Haywood Securities, said he’s a big believer in the cannabidiol (CBD) industry, reinforced by the hemp legislation in the US.

The passing of the farm bill has opened the doors to the market for CBD derived from hemp.

Gilmer and fellow panelist Niel Marotta, president and CEO of INDIVA (CSE:NDVA), believe the market will need unique products to capture the attention of the public markets.

The farm bill has launched a race amid cannabis companies to announce strategies for entries into the hemp market and for its derivatives.

With its strategy deployed, Canopy will become the first Canadian cannabis firm with a major Canadian and US public listing with producing assets in the American market.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: INDIVA is a client of the Investing News Network. This article is not paid-for content.

As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.

A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.

Keep reading... Show less

The product will include polyphenols known to have significant health benefits.

BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.

The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).

Keep reading... Show less

 Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .

Keep reading... Show less

Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.

For more information regarding the Company or the offering, please contact ir@hillstreetbevco.com, or

Keep reading... Show less