Canadian cannabis company Canopy Growth Corp. CGC, +9.73% WEED, +8.59%said Monday it has been granted a license to process and produce hemp in New York state. The company said it is planning to invest $100 million to $150 million in a New York base, capable of producing tons of hemp extract. Hemp is a type of cannabis plant that does not contain the psychoactive ingredient that produces the “high” associated with the substance but does contain CBD, or cannabidiol, an ingredient that is widely held to have health benefits. Hemp can also be used in construction and plastics. Hemp was recently legalized in the U.S. via its inclusion in the recent Farm Bill. Canopy Growth is evaluating sites in the Southern Tier of New York and intends to announce a choice within 100 days. It will provide the anchor business in a hemp industrial park and will source its product from American farmers. Canopy’s U.S. -listed shares were up 7% on Monday, while Canadian-listed shares were slightly higher. The S&P 500 SPX, -0.31% was down 0.3%.
Canopy Growth Corp. shares were trading at $41.67 per share on Monday afternoon, up $3.42 (+8.94%). Year-to-date, CGC has gained 55.08%, versus a 3.16% rise in the benchmark S&P 500 index during the same period.
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