Canopy Growth, one of the largest cannabis companies in North America, is coming to the U.S.
The Canadian company, which produces cannabis products, recently received a green light earlier this week for large-scale hemp production in New York State. It will be the company’s first hemp farm in the U.S.
Shares of Canopy jumped 11% on Tuesday, January 14, following the news.
Hemp vs. cannabis vs. CBD
Hemp is a non-psychoactive cousin to marijuana (meaning it doesn’t get you high) and it’s in the same cannabis plant family. Its fibers can be used for food, clothing, even building materials.
But its most popular use in recent years is CBD oil, a derivative that increasing numbers of consumers are using for various health-related issues such as anxiety, muscle aches and pains, and insomnia. CBD oil is expected to be a $20 billion dollar industry by 2020.
Hemp, and CBD oil derived from it, were legalized in the U.S. in December, paving the way for Canadian producers to enter the country. CBD oil derived from marijuana plants has not been legalized by the federal government.
New York, where legislators are considering making recreational marijuana legal, created something called the Industrial Hemp Research Initiative to develop the hemp market in the state.
More about Canopy Growth
The company said in a press release that it plans to invest up to $150 million in its New York operations.
Constellation Brands, the manufacturer of Corona beer, invested $4 billion in Canopy in August, 2018.
Recreational use of pot is now legal in 10 states in the U.S., although it’s still illegal on the federal level. Recreational use of marijuana is legal throughout Canada.