Three million sq. ft. of marijuana growing capacity in B.C.

Canopy Growth is set to develop up to 3M sq. ft. of growing capacity in B.C.

Canopy Growth Corp. (TSX:WEED) says it will develop up to three million square feet of greenhouse growing capacity in British Columbia, more than doubling Canada’s biggest licensed marijuana producer’s production footprint.

The company said in a statement that it has entered into a definitive joint venture agreement with a large-scale greenhouse operator where it will be a majority shareholder of BC Tweed Joint Venture Inc., a new company.

Canopy Growth CEO Bruce Linton says the greenhouses currently grow peppers and the company will spend tens of millions of dollars to transform them to grow cannabis, the majority of which will be sold domestically.

The company will spend $20 million to develop 1.3 million square feet and hopes to have product available as soon as July 1 next year when recreational marijuana sales are set to be legalized.

Related: ‘Exploding’ marijuana industry threatens B.C. farmland

The company will lease the facility from the partner’s affiliate and will have the option to acquire it. The undisclosed partner will receive Canopy shares as consideration.

The deal expands Canopy Growth’s greenhouse production footprint to about 2.3 million square feet.

BC Tweed will also have the exclusive option to develop another 1.7 million square feet of existing greenhouse infrastructure.

Canopy started off growing indoors at a converted chocolate factory in Smiths Falls, Ont. but it has joined many others in adding greenhouse spaces, which facilitate lower cost production. It also has about 900,000 square feet of indoor production capacity.

The expansion comes as reports suggest a looming medical and recreational marijuana shortage following legalization. Licensed producers are scrambling to add production space as the country ramps up to supply a legal recreational market.

Linton said the growth comes amidst substantial demand and the company’s promises that it will fulfil any orders from any medical marijuana patients with Tweed or other Canopy Growth brands before recreational use orders.

Related: Canadians favour marijuana legalization

The supply agreement covers two years, including four million grams of cannabis and derivative products in the first year, according to a company statement.

Aleksandra Sagan, The Canadian Press

Just Posted

Town of Qualicum Beach to sell more than $5M in real estate

Sales to pay for recent real estate purchases, including St. Andrews Lodge

France doubles up Croatia 4-2 to win World Cup

Played in Moscow Russia, latest Fifa World Cup marks the highest scoring final since 1966

Living with obsessive compulsive disorder

The Big Read: Vancouver Island mom calls for more mental health services as son battles OCD

Parksville councillor says info more ‘forthcoming’ in the future on supportive housing project

Leanne Salter said she was ‘kept in the dark’ on details about 222 Corfield St. South

VIDEO: Top winners announced for sand sculpting competition

See the sculptures as they progress through the competition at Parksville Community Park

VIDEO: Firefighters put out brush fire in Nanaimo

Fire broke out in the area of a new development under construction in East Wellington

Former NHL goalie Ray Emery drowns in Lake Ontario

Police say the 35-year-old’s death appears to be a ‘case of misadventure’

Air quality statement warns of smoky air for Kamloops area

Environment ministry says area on north side of Thompson River may be affected by wildfire smoke

Pussy Riot claims on-field protest at World Cup final

Russian protest group claimed responsibility after four people ran onto field in police uniforms

Fans party on Montreal streets after French World Cup win

To city is home to nearly 57,000 French nationals

B.C. VIEWS: Making private health care illegal again

Adrian Dix battles to maintain Cuba-style medical monopoly

Almost every part of Canada’s largest national park deteriorating: federal study

Drawing on decades of research — the report lists 50 pages of citations

Activists protest outside Kinder Morgan terminal in kayaks, canoes

Tsleil-Waututh elder Ta’ah Amy George led the water ceremony from a traditional Coast Salish canoe

Most Read