Canopy Growth repurposes Kelowna facility for medical cannabis

Published 08/10/2025, 12:06
Canopy Growth repurposes Kelowna facility for medical cannabis

SMITHS FALLS, ONTARIO - Canopy Growth Corporation (TSX:WEED) (Nasdaq:CGC), a $456 million market cap cannabis producer, announced Wednesday that its DOJA facility in Kelowna, British Columbia has been converted to exclusively support medical cannabis production for the company’s Spectrum Therapeutics portfolio. According to InvestingPro data, the company has shown strong momentum with a 75% price return over the past six months.

The facility will cultivate small-batch craft cannabis under the DOJA brand, which will be available only to registered Spectrum Therapeutics medical patients, including Canada’s veteran community. According to the company’s press release, the site now operates under a micro-cultivation license and has undergone upgrades to enhance production quality.

"As we advance Canopy Growth’s transformation, Canada’s medical market continues to be a standout business for us," said Luc Mongeau, Chief Executive Officer of Canopy Growth. With current revenue of $202 million and a healthy gross margin of 27.83%, InvestingPro analysis suggests the company is currently undervalued despite operational challenges.

The repurposing of the Kelowna facility represents part of Canopy Growth’s strategy to strengthen its position in Canada’s medical cannabis market. The company stated that DOJA will focus on craft cultivation specifically for Spectrum patients.

Andrew Bevan, SVP of Global Medical at Canopy Growth, noted that the exclusive supply arrangement for Spectrum patients aims to enhance the company’s medical portfolio.

Canopy Growth maintains operations across Canada, Europe, and Australia in the medical cannabis sector, while also pursuing opportunities in the U.S. THC market through its unconsolidated interest in Canopy USA, LLC.

The company’s broader portfolio includes cannabis brands such as Tweed, 7ACRES, and Deep Space, as well as vaporization devices by Storz & Bickel.

In other recent news, Canopy Growth Corporation has made significant financial strides by completing a $50 million debt prepayment ahead of schedule, fulfilling its debt reduction obligations with lenders. This move included an early prepayment of $25 million against its senior secured term loan. Additionally, Canopy Growth has extended the deadline for shareholders to submit proxies for its upcoming annual general and special meeting, aiming to ensure a quorum is achieved. The meeting will be held via live audio webcast, and Institutional Shareholder Services has recommended that shareholders vote in favor of all resolutions.

In leadership changes, Canopy Growth announced the appointment of Tom Stewart as the permanent Chief Financial Officer. Stewart has been with the company since 2019 and served as Interim CFO since July 2025. Meanwhile, Canopy USA has partnered with JP Brand Advisors to expand the distribution of Wana Wellness hemp-based beverages and gummies across the United States. This strategic partnership will focus on distributor management and strategic account growth for Wana’s hemp beverage portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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