Less than a month after securing a hemp license in the state of New York and announcing an initial investment of between $100 and $150 million, Canopy Growth Corp CGC said it plans to expand into other states and increase its financial commitment.
What Happened
After New York, Canopy Growth plans to add hemp production in Rhode Island and two or three other states, Canopy CEO Bruce Linton told Yahoo Finance. The company will increase the amount it plans to invest to as much as $500 million.
Why It's Important
The federal legalization of hemp and CBD creates numerous opportunities in the U.S. market.
Last year, Canopy Growth secured a $4-billion investment from Constellation Brands, Inc. STZ. Both companies are committed to develop cannabis-infused beverages.
What's Next
The expansion will occur on a state-by-state basis, Linton said.
" ... What has to happen is the state needs to regulate what is permissible for CBD," he told Yahoo.
The company will focus on states with big populations and "progressive leadership who want to have hemp become part of their actual job creation and industrial platform," Linton said.
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