Canopy Growth Inks Offtake Deal with PharmHouse

PharmHouse will leverage Canopy Growth’s genetics – selected and supplied by the Company – and flower will be returned to the Company to be …

Canopy Growth signed an off-take agreement with PharmHouse, a partly owned joint venture of its subsidiary Canopy Rivers.

Canopy Growth (NYSE:CGC,TSX:WEED) signed an offtake agreement with PharmHouse, a partly owned joint venture of its subsidiary Canopy Rivers (TSXV:RIV,OTC Pink:CNOPOF).

As quoted in the press release:

Under the terms of the agreement, PharmHouse has agreed to allocate high quality cannabis flower from an additional 20 per cent of the flowering space available at its Leamington greenhouse facility over the next three years.

PharmHouse will leverage Canopy Growth’s genetics – selected and supplied by the Company – and flower will be returned to the Company to be sold under Canopy Growth’s diverse brands and banners. Under the terms of the new offtake agreement, PharmHouse is committed to producing GMP-certified, high quality cannabis flower within 18 months of its cultivation license and the flower must comply with the Company’s high standards for cannabis quality. GMP, or Good Manufacturing Practices, certification is the internationally recognized system to ensure all produced goods meet the highest consumer health and safety standards, allowing the Company to export the flower to its international divisions. Including this new agreement, 30 per cent of PharmHouse’s total flowering space has been committed to Canopy Growth.

“We have witnessed Canopy Rivers and its joint venture partner pour their hard work into the PharmHouse facility in Leamington and couldn’t be more satisfied with how it has turned out,” said Bruce Linton, Chairman & Co-CEO of Canopy Growth Corporation and Chairman & CEO of Canopy Rivers.

Click here to read the full press release.

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Canopy Growth Corp’s BC greenhouses are running smoothly, GMP says

Following a tour of Canopy Growth Corp’s (Canopy Growth Corp Stock Quote, Chart TSX:WEED, NYSE:CGC) Aldergrove and Delta facilities, GMP …

Following a tour of Canopy Growth Corp’s (Canopy Growth Corp Stock Quote, Chart TSX:WEED, NYSE:CGC) Aldergrove and Delta facilities, GMP Securities analyst Martin Landry says things are on track.

On Tuesday, WEED hosted a tour of its BC facilities, which Landry attended.

“The BC greenhouses appear to be running smoothly across all areas of production, trimming and drying,” the analyst said.

Landry thinks that, over time, the BC facilities could produce 300 tonnes annually.

“The facilities are ramping up production with only 400k sq. ft. of greenhouse currently unlicensed, the application for which has been submitted. With a number of harvests already under the belt, the ramp up focus is on increasing yields and shortening cycle time. WEED expects it can achieve an equivalent of over four harvests per year. Canopy has trimming and drying capacity to handle the full production of the BC Tweed facilities.”

In a research update to clients today, Landry maintained his “Buy” rating and one-year price target of (C) $72.00 on Canopy Growth Corp, implying a return of 20.7 per cent at the time of publication.

Landry thinks Canopy will post EBITDA of negative $216.6-million on revenue of $239-million in fiscal 2019. He expects those numbers will improve to EBITDA of negative $51.8-million on a topline of $799-million the following year.

The analyst adds that he thinks production cost of $0.50 per gram is achievable at Canopy;s BC facilities.

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Oppenheimer & Co. Inc. Raises Stake in Canopy Growth Corp (CGC)

Oppenheimer & Co. Inc. boosted its position in shares of Canopy Growth Corp (NYSE:CGC) by 5.9% in the first quarter, according to the company in …

Canopy Growth logoOppenheimer & Co. Inc. boosted its position in shares of Canopy Growth Corp (NYSE:CGC) by 5.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 58,434 shares of the marijuana producer’s stock after acquiring an additional 3,239 shares during the period. Oppenheimer & Co. Inc.’s holdings in Canopy Growth were worth $2,534,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Bank of New York Mellon Corp acquired a new stake in Canopy Growth in the third quarter valued at approximately $246,000. Renaissance Technologies LLC acquired a new stake in Canopy Growth in the third quarter valued at approximately $5,536,000. AQR Capital Management LLC grew its holdings in Canopy Growth by 183.7% in the third quarter. AQR Capital Management LLC now owns 75,423 shares of the marijuana producer’s stock valued at $3,661,000 after purchasing an additional 48,835 shares during the period. Glenmede Trust Co. NA acquired a new stake in Canopy Growth in the third quarter valued at approximately $223,000. Finally, Morgan Stanley boosted its stake in shares of Canopy Growth by 243.3% in the third quarter. Morgan Stanley now owns 4,144,694 shares of the marijuana producer’s stock worth $201,598,000 after acquiring an additional 2,937,286 shares during the last quarter. 8.32% of the stock is owned by hedge funds and other institutional investors.

A number of analysts have recently issued reports on the company. Zacks Investment Research raised Canopy Growth from a “sell” rating to a “hold” rating in a research note on Monday, April 15th. Seaport Global Securities reaffirmed a “hold” rating on shares of Canopy Growth in a research note on Tuesday, April 2nd. Desjardins assumed coverage on Canopy Growth in a research note on Thursday, April 25th. They issued a “buy” rating on the stock. Piper Jaffray Companies set a $80.00 price target on Canopy Growth and gave the stock a “buy” rating in a research note on Friday, April 12th. Finally, TheStreet raised Canopy Growth from a “d+” rating to a “c” rating in a research note on Friday, March 1st. One analyst has rated the stock with a sell rating, four have assigned a hold rating and seven have given a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $57.85.

Shares of Canopy Growth stock opened at $49.08 on Friday. Canopy Growth Corp has a one year low of $22.77 and a one year high of $59.25. The company has a market cap of $16.89 billion, a P/E ratio of -153.38 and a beta of 4.17. The company has a current ratio of 17.85, a quick ratio of 17.12 and a debt-to-equity ratio of 0.10.

Canopy Growth (NYSE:CGC) last announced its quarterly earnings data on Thursday, February 14th. The marijuana producer reported ($0.67) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.15) by ($0.52). Canopy Growth had a negative return on equity of 14.39% and a negative net margin of 267.40%. The company had revenue of $62.85 million for the quarter, compared to analysts’ expectations of $66.09 million. On average, research analysts predict that Canopy Growth Corp will post -1.08 earnings per share for the current year.

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Canopy Growth Profile

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names.

See Also: What are earnings reports?

Institutional Ownership by Quarter for Canopy Growth (NYSE:CGC)

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Canadian cannabis firm to renovate former building in Kirkwood for industrial hemp park

KIRKWOOD, N.Y. — Smith Falls, Ontario–based Canopy Growth Corp. (NYSE:CGC) has “secured” a 308,000-square-foot facility on a 48-acre …

KIRKWOOD, N.Y. — Smith Falls, Ontario–based Canopy Growth Corp. (NYSE:CGC) has “secured” a 308,000-square-foot facility on a 48-acre property in Kirkwood, describing it as a “key milestone in establishing its hemp industrial park in the Southern Tier.”

BJNN on Monday inquired about the purchase cost and the previous owner but the firm didn’t immediately respond. Canopy Growth in January said it plans to invest between $100 million and $150 million to anchor an industrial-hemp park

In its Monday news release, the firm said that design activities will begin “immediately” with construction starting this summer.

Canopy Growth wants to use the structure to build the infrastructure “necessary” to support hemp-derived cannabinoid extraction and related manufacturing together with providing an opportunity for participation by other businesses in the hemp industry.

With the location secured, Canopy Growth expects work to begin “quickly” on Pine Camp Drive with local contracted construction teams retrofitting the facility. It is anticipated that the operations will create “hundreds” of new local full-time positions, in addition to the contracted construction workers.

The state in January granted a hemp licence to Canopy Growth, allowing it to establish New York operations and build a facility for hemp-derived cannabinoid extraction and processing for various applications. The new hemp facility will be capable of producing tons of hemp extract on an annual basis.

“As we establish a stronger foothold in the exciting U.S. market, we want to do so in a way that prioritizes local vendors and creates meaningful career opportunities for people in the communities where we operate,” Bruce Linton, chairman & co-CEO of Canopy Growth, said in the firm’s release. “The vision for our investment is to create an ecosystem that inspires new entrepreneurs and generates more economic stimulus than a single company can offer. As we build the facilities, we’ll also attract like-minded businesses who share our excitement for the emerging hemp and hemp-derived cannabinoid markets.”

Canopy Growth will begin hiring senior leadership in late 2019 and recruit the full workforce in mid 2020. The firm has also started securing farm capacity to supply enough hemp for its own future extraction and formulation activities within the park. Canopy Growth also intends to prioritize farms within New York for the supply of hemp at this site.

Canopy Growth is hoping to attract businesses and researchers focused on every application of the hemp crop such as fibers, seeds, and hemp-derived cannabinoids. It also plans to begin approaching third-party organizations to join the ecosystem.

“We welcome Canopy Growth to Broome County with open arms. We haven’t seen an investment like this in Broome in some time, and we’re so excited a company like them is setting up shop in our area,” Broome County Executive Jason Garnar said. “With Canopy Growth coming to Broome County, we look forward to seeing the benefits in job investment.”

Contact Reinhardt at ereinhardt@cnybj.com

Photo credit: Canopy Growth website

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Kirkwood Chosen for Canopy Growth’s Hemp Industrial Park

Broome County will be the home of a planned “hemp industrial park” to be developed by Canopy Growth Corporation. The Ontario-based company …

Broome County will be the home of a planned “hemp industrial park” to be developed by Canopy Growth Corporation.

The Ontario-based company Monday announced it intends to develop the facility in the town of Kirkwood.

Canopy Growth expects to transform a Felchar Manufacturing building into a complex that will support hemp-derived products.

The company plans to use the 308,000-square-foot facility on a 48-acre property for the massive project. The concept was publicly announced last January.

In a statement, Canopy Growth chairman Bruce Linton said the firm aims to establish a “stronger foothold” in the United States market “in a way that prioritizes local vendors.”

Design work for the Kirkwood operation is getting underway and construction on the site is scheduled to start this summer.

Canopy Growth intends to hire managers for the facility beginning late this year. The company plans to recruit other workers for the site in mid 2020.

Contact WNBF News reporter Bob Joseph: bob@wnbf.com

For breaking news and updates on developing stories, follow @BinghamtonNow on Twitter.

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