Canopy Growth Corporation (NYSE:CGC,TSX:WEED) announced a deal to acquire KeyLeaf Life Sciences, a bio-product extractor in Saskatoon, Saskatchewan.
As quoted in the press release:
Canopy Growth has been working closely with KeyLeaf – formerly known as POS Bio-Sciences – as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets. As previously disclosed, Canopy Growth assumed control of KeyLeaf for accounting purposes in November 2018. As such, KeyLeaf’s financial results were consolidated in the Company’s fiscal 2019 financial statements. Through the transaction the Company is acquiring a large-scale Canadian extraction facility as well as an extraction-related facility in the United States to support the Company’s US CBD expansion.
KeyLeaf has been working closely with Canopy Growth over the past year to retrofit its Saskatchewan facility to advance technology development and commercialization, in order to process hemp and cannabis biomass, and to conduct pre- and post-extraction processes. It is anticipated the facility, which is currently in the Health Canada licensing process, will be able to process up to 5,000 kilograms of input materials daily when operational.
“The KeyLeaf operations and team deliver instant scale at a pivotal stage in our growth, with brand new products coming to market later this year requiring sophisticated extraction capabilities at scale,” said Bruce Linton, Chairman & co-CEO, Canopy Growth Corporation.