SMITHS FALLS, ON and ALICANTE, Spain, April 16, 2019 /PRNewswire/ - Canopy Growth Corporation is pleased to announce that it has completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. The acquisition lays the foundation for Canopy Growth to expand its European production footprint into one of the most ideal growing regions in the world, complementing the Company's existing 430,000 square foot licensed production site in Odense, Denmark, as well as its world-class ISO 13485 internationally certified Storz and Bickel facility in Tütlingen, Germany.
Cafina is one of three companies in Spain authorized to cultivate, distribute and export cannabis containing more than 0.2% of tetrahydrocannabinol (THC) for medicinal and research purposes, and does so today in a 1,600 sq. ft. greenhouse. It is also licensed to conduct hemp cultivation. With this acquisition and planned corresponding expansion in Spain, Canopy Growth improves its long-term positioning to address demand across Europe for medical cannabis and CBD products. Canopy Growth is also partnered with a second licensed producer in Spain that produces cannabis flowers for the Company under an existing supply arrangement.
"Operating multiple production assets within Europe will allow us to increase revenue in the EU free of supply constraints," commented Mark Zekulin, President & Co-CEO, Canopy Growth. "This strategic acquisition in a scalable, low-cost production environment diversifies our owned production capabilities in Europe, similar to our approach in Canada where we have production facilities in seven different provinces. Adding Cafina will allow us to quickly build out our presence in Spain using its existing cultivation licence as a launch pad, while ensuring our Canadian footprint – the largest in the world – can continue to serve the medical and recreational needs of Canadians."
Founded in 2014, Cafina is based in the Province of Alicante in Spain. With a focused team, Cafina has already established a small greenhouse for research-related medical cannabis production in addition to focusing on crop-related R&D and the sale of hemp seed. Cafina received its general and research licence in November 2018 from the Spanish Agency for Medicines and Health Products (AEMPS) and had previously been granted a hemp licence which authorized the cultivation of cannabis sativa (<0.2% THC) and small-scale extraction of cannabinoids for research purposes. Cafina CEO, Xavier Delas Martinez will continue managing the site as Canopy Growth injects capital in order to scale the operation through calendar 2019.
Canopy Growth continues to strategically deploy its substantial cash reserves to acquire assets that will allow the Company to scale efficiently and into global markets.