Loading articles...

CannTrust to enter U.S. CBD market via hemp joint-venture in California

Mature cannabis plants are photographed at the CannTrust Niagara Greenhouse Facility during the grand opening event in Fenwick, Ont., on June 26, 2018. THE CANADIAN PRESS/Tijana Martin

VAUGHAN, Ont. — CannTrust Holdings Inc. says it is entering the U.S. market for CBD, starting with a hemp production joint-venture in California.

The Vaughan, Ont.-based licensed producer says it has signed a non-binding letter of intent with Elk Grove Farming Company to secure hemp with high cannabidiol (CBD), the non-intoxicating compound found in cannabis and hemp.

Under the deal, the joint-venture will secure a long-term lease for more than 3,000 acres of farmland designated for hemp production in Southern California.

CannTrust company says it will invest up to $20 million in its U.S. operations through to the end of 2020.

It adds that it will process, formulate and sell hemp-derived CBD products.

CannTrust is the latest Canadian licensed producer to head south of the border after the passage of a U.S. law known as the farm bill allowed for hemp cultivation for the purposes of extracting CBD.

 

Companies in this story: (TSX: TRST)

 

The Canadian Press