Shares of Canadian marijuana producer Canopy Growth saw gains on Monday after the company announced that it has been granted a license by New York state to process and produce hemp farms.
Dependent on board approval of a specific site, the company plans to invest between $100 million and $150 million in its New York operations, “capable of producing tons of hemp” on an annual basis.
Shares were jumping 11% on the news.
“Canopy Growth was founded to drive innovation within the cannabis and hemp industries. In New York we see an opportunity to create products that improve people’s lives,” said Bruce Linton, Chairman and Co-CEO of the company.
He added, “In the process, we will create jobs in an exciting, highly profitable new industry. I applaud the political leadership at the federal and state level that has allowed today’s announcement to become reality.”
“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. I fought so hard to strip the burdensome federal regulations from industrial hemp in our Industrial Hemp Farming Act of 2018, which was recently included in the Farm Bill, because I knew how much it could mean to the Southern Tier, and this investment proves it. 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,” remarked Senator Charles E. Schumer.
Disclaimer: We have no position in Canopy Growth Corp. (NYSE: CGC) and have not been compensated for this article.