Happy New Year from your mates at Canopy Growth: a year in review
Date: 01/05/2018 @ 2:30 PM
Source: PR Newswire (Canada)
Stock: Canopy Growth Corporation (WEED)
Quote: 34.0 1.68 (5.20%) @ 4:59 PM
SMITHS FALLS, ON, Jan. 5, 2018 / CNW / - Each year, the Canopy Growth Corporation (TSX: WEED) team ("Canopy Growth" or the "Company") reviews progress made to inform investors and stakeholders.
In January 2014, we did a retrospective of the 2013 calendar year, highlighting our successful efforts to secure one of Canada's first crop permits, and mentioning the efforts of our construction teams to complete before Christmas. facilities to be inspected by Health Canada before we can offer our products online. By the end of 2013, we were excited to accomplish many things in the years to come, but our bank accounts were dwindling and we wondered if we could afford our ambitions. Fortunately for our shareholders, we have completed all our projects, and others.
Taking stock of the 2014 calendar year, we proudly noted that the Company was the first federally regulated and publicly traded cannabis producer in North America, and the first company in our sector to have completed an acquisition. . Access to capital is simpler today, but an initial public offering is never easy; in 2014, we had to demonstrate exceptional perseverance to gain investor confidence in the cannabis market. Our very first sale took place in May 2014 and by the end of the year we had expanded the product line of the Tweed store, which now had 13 items. As events unfolded quickly, 2014 was also marked by the diversification of Tweed's activities, which became the first authorized owner of indoor and greenhouse production facilities by completing the acquisition of Tweed Farms and carrying out its first harvest in these facilities.
At the beginning of the 2015 calendar year, the Company had fewer than 3,000 registered clients. In mid-year, Canopy completed the first acquisition of an authorized entity in the cannabis sector by acquiring Bedrocan Canada as part of a fully-funded, executive-funded operation. This combination and the priority given to our market share have enabled us to increase our clientele to more than 8,000 Canadians by the end of 2015. In 2015, Tweed also became one of the leading producers. authorized cannabis oils and has established an avant-garde partnership with DNA Genetics, the world's most awarded cannabis breeder.
During the 2016 calendar year, the Company entered into another important partnership with Snoop Dogg, an iconic figure in the cannabis field. In addition, 2016 ushered in the Company's international operations, which made lucrative incursions into Brazil, Australia and Germany; Canopy became the first Canadian company allowed to export dried cannabis flowers to the latter country.
As time passes, 2017 has arrived.
Throughout the 2017 calendar year, Canopy Growth increased its presence across Canada. Its existing and planned cannabis production areas are now established in seven Canadian provinces, covering a total area of 5.6 million square feet, dedicated to the diverse cultivation of cannabis. This momentum has been partially facilitated by leveraging the unparalleled expertise we have gained in greenhouse cultivation through two joint ventures: (i) Tweed's joint venture in British Columbia, a program to implement a two-site value, in partnership with a well-established, large-scale BC greenhouse operator, under the direction of Victor Krahn; ii) a partnership with Les Serres Stéphane Bertrand, a Quebec greenhouse grower who has the know-how of several generations and has experience in organic production.
The expansion of our facilities also required substantial investments in the infrastructure required to support extraction, resin refining and oil production as well as capsule manufacturing, and a broad distribution infrastructure designed to support our own exponential growth. In 2017, we also launched CraftGrow, a program that leverages all of this infrastructure in a mutually beneficial way by bringing new producer products to our existing customer base, and nine CraftGrow partners have joined this collaborative program. .
Canopy Growth Canadian Production Platform
amenities
Type
State of progress
Approx. (in square feet)
Tweed Hershey Drive
interior
Authorized production area of 168,000 sq. Ft.
450,000
Tweed, Nfld.
interior
In construction
150,000
Tweed, NB
interior
In construction
50,000
Cannabis Green (Saint-Lucien)
interior
Authorization obtained
10,000
Cannabis Green (The Mirabel Greenhouses)
greenhouses
hybrid
In construction
700,000
Bowmanville facilities
interior
Authorization obtained
60,000
Scarborough Facilities
interior
Authorization obtained
50,000
Creemore facilities *
interior
Authorization obtained
15,000
Tweed Farms
Hybrid greenhouses
Authorized production area of 350,000 sq. Ft.
1,000,000
Tweed Grasslands
interior
Authorization obtained
60,000
Tweed Edmonton
interior
In construction
100,000
Tweed Joint Venture BC - First Location
Hybrid greenhouses
In construction
1,300,000
Tweed Joint Venture BC - Second Location
Hybrid greenhouses
In construction
1,700,000
Total:
5,645,000 !!!!! WOW!!
* in partnership with Green House Seeds and Organa Brands
Still in Canada, at our Yorkton facility, we hold hemp production licenses, we also have unique CBD hemp cultivars and exclusive expertise in crop-scale processing. Thus, when the laws governing CBD and hemp are changed, we will be in a good position to market large-scale CBD hemp production in a timely manner.
To expand in Canada, we have allocated hundreds of millions of dollars to our national infrastructure. Canopy also continued its international expansion, including a large-scale, now authorized and near-completion production facility in Denmark, another facility currently under construction in Jamaica, and a distribution network that caters to pharmacies across Canada. Germany. Work in progress in Brazil and Chile, as well as Australia, in collaboration with leading Australian cannabis company AusCann Holdings, provides Canopy with a solid international foundation for 2018.
In 2017, the renewal of the alliance of our brands and our partnership with DNA Genetics, the breeder of cultivars who won the highest number of Cannabis Cup awards, the expansion of the Leafs By Snoop range, which is is enriched with extracted oils, and the establishment of collaborative relationships with Organabrands and Green House Seeds has allowed Canopy Growth to stand out from the competition in terms of brand diversification by building on authentic brands and famous. Through these relationships, our family of brands will be imposing on consumers in the legalized recreational cannabis market and, perhaps more importantly, will enable the Company to assert itself as a true one-stop shop for provincial retailers. will enter the market in 2018. These mutually beneficial relationships began to bear fruit in late 2017, with Canopy having critical supply agreements with New Brunswick and Newfoundland and Labrador. Labrador, which resulted in rare retail permits issued in Newfoundland and Labrador.
Canopy retained its dominant market share and grew its Canadian customer base. At the end of calendar year 2017, approximately 69,000 registered patients used Tweed Main Street as a source of therapeutic cannabis. Industry leader TweedMainStreet.com, which has consolidated a number of production facilities and exclusive brands into a single e-commerce site, is proud today to offer seven unique products and sell on average one gram every 3.9 seconds.
In public markets, Canopy Growth has, as always, been a pioneer in the ethical and responsible cultivation of cannabis, and has generated billions of dollars in value for its shareholders, being the company whose stock has performed best in Canada among those included in the TSX / S & P Index in 2017. Strategic investment of C $ 245 million by Constellation Brands, a Fortune 500 company known to be a game changer in the cannabis sector, is a guarantee of the strength of Canopy. This company has become a strategic ally, whose support will be invaluable in this new era of cannabis legalization in Canada.
Outlook for 2018
Can we do better than in 2017? Surely, and we will work as hard as in previous years to surpass ourselves.
In 2018, global opportunities will become increasingly important to our overall growth and will become increasingly viable in a context of changing laws around the world. In Europe, Latin America and Australia, 2018 will see Spectrum Cannabis and Tweed assert their global leadership.
In Europe, as production is allowed in Denmark, the Company will be able to meet the needs of patients and the requirements of regulatory bodies, which are looking for well-known producers and stable cultivars of therapeutic cannabis produced in Europe, for Europe . In this regard, we mentioned in a press release that Spectrum's obtaining of a license in Denmark was a first for a Canadian company in the EU, but this information was wrong. Tilray had already announced that its activities were allowed in Portugal. We hope to establish a friendly competition with Tilray, as both companies offer excellent products on the European market. Hi, Zack!
Latin America will become a promising market in 2018. The market shares we hold in Chile and Brazil will serve us as stepping stones in this region. In the same vein, the Australian laws and regulations governing the cannabis trade are being finalized, and the Company will make every effort to continue to exercise global leadership in this region in 2018. The United States market is United, as well as territories without federal cannabis legislation, remain inaccessible to Canopy Growth. The Company would be exposed to undue risk if it were operating in the United States, and this could compromise its ability to attract large institutional investors and could limit its opportunities to obtain listing on large stock exchanges.
And, of course, 2018 will be a pivotal year in Canada. Canopy plans to seize the opportunities offered by the regulated recreational market, which represents billions of dollars. To this end, the Company will continue to cultivate quality products with brands that people know and trust and, at the same time, manage the supply of these products using a large production platform.
AI
