CannTrust to enter U.S. CBD market via hemp joint-venture in California
Cannabis plants are photographed during the grand opening event for the CannTrust Niagara Greenhouse Facility in Fenwick, Ont., on Tuesday, June 26, 2018. THE CANADIAN PRESS/ Tijana Martin
The Canadian Press
Published Wednesday, June 19, 2019 9:56AM EDT
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.