The Canadian weed industry was back in the spotlight Thursday as Canopy Growth Corp (TSX:WEED), Canopy Rivers and LiveWell Foods Canada Inc are to collaborate to commercialise Livewell's two large scale pot projects in Ontario and Quebec.
LiveWell is a vertically integrated cannabis company with a full seed-to-sale solution, including two large greenhouse projects in development totalling over 1.5mln sq ft.
The private firm has established partnerships with leading names in the sector and also distributes retail and bulk hemp products under the O-Hemp brand and plans to distribute cannabis edibles and infused products.
Canopy's team will provide LiveWell with high-quality genetics for initial cultivation, access to trained personnel for guidance/support, and other strategic and financial support .
"This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector," said Bruce Linton, Canopy Growth chief executive and chairman.
"Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise."
LiveWell has received an initial purchase agreement from Canopy, for cannabis production at the Ottawa project.
LiveWell also has the option to draw on up to $20,000,000 of debt financing from Canopy Rivers (subject to certain milestones) to support the firm's continued growth.
Canopy Growth shares added 0.22% Thursday to stand at C$27.70.