Canadian cannabis company Canopy Growth Corp. CGC, +8.58%WEED, +8.61% said Monday it has been granted a licence 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, -0.42% was down 0.3%.
Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails. Sign up here.
Source: Read Full Article