Canopy Growth Corporation has completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. (Cafina). "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," the company explains.
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. Canopy Growth is also partnered with a second licensed producer in Spain that produces cannabis flowers for the Company under an existing supply arrangement.
"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 build out our presence in Spain using its existing cultivation licence as a launch pad, while ensuring our Canadian footprint can continue to serve the medical and recreational needs of Canadians."commented Mark Zekulin, President & Co-CEO, Canopy Growth.
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 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.