Two Canadian cannabis firms mentioned this week that their technique for enlargement into the U.S. market consists of – and can begin with – hemp and CBD.
Cover Development, a Smiths Falls, Ontario-based chief within the Canadian marijuana trade, mentioned Tuesday it would open hemp processing amenities in seven U.S. states throughout the subsequent yr.
Earlier this yr, the corporate introduced plans to enter the U.S. cannabis market, beginning with building of a $150 million industrial park in Kirkwood, New York, for hemp-derived CBD extraction and processing.
Till that occurs, hemp and CBD extraction and processing facilities would be the extent of Cover’s U.S. offers, Cover CEO Bruce Linton instructed Bloomberg.
Cover Development trades on the New York Inventory Alternate as CGC.
In the meantime, Cronos Group additionally has its sights set on the nascent hemp trade in the USA.
The Toronto-based firm is more likely to launch CBD merchandise by the tip of the yr, CEO Mike Gorenstein mentioned.
A landmark $1.eight billion funding by North American tobacco big Altria Group, together with Cronos’ ties to cannabis personal fairness agency Gotham Inexperienced Companions, is perhaps Cronos’ pathway to securing a foothold within the U.S., Gorenstein mentioned.
“By the Altria partnership, we do have entry to over 200,000 retail shops throughout the U.S. .… entry to networks of farmers that may convert from rising tobacco to rising hemp,” Gorenstein instructed on-line information community Cheddar.
“It’s actually about having the precise product after which rolling it out throughout.”
Cronos Group trades on the Toronto Inventory Alternate and the Nasdaq below the ticker image CRON.
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