By: Dylan Sikes - AllPennyStocks.com News

Wednesday, September 30, 2015

The medical marijuana sector has cooled down from its fervor a year or so ago when investors couldn’t get enough of the volatile pot space. Still, cannabis is a regular topic on the net and television, including ads advocating for more states to join the group of 17 that have already passed regulations permitting medical marijuana. One of the criticisms of medical pot by some opponents is the lack of clinical research to support the positive effects of cannabis for things like seizures and chronic pain. Others refute that contention, saying there is plenty of research underscoring the efficacy, although most won’t argue that there should be standards, regulations and additional lab and human studies.

In the latest piece of data for pot proponents, a long-term benchmark study was just published online in The Journal of Pain. As reported by Science Daily, Dr. Mark Ware, a pain specialist and the leader of a Canadian research team from the Research Institute of the McGill University Health Centre that conducted the multi-site study, "We found that medical cannabis, when used by patients who are experienced users, and as part of a monitored treatment program for chronic pain over one year, appears to have a reasonable safety profile."

Whatever a person’s stance, the industry continues to evolve and, on a public level, the better companies are starting to be weeded out (no pun intended) from the lesser firms.

In Canada, Canopy Growth Corporation (TSX-Venture:CGC) is expanding its presence…literally. The company’s wholly owned subsidiary Tweed Farms Inc., as well as Canopy’s other subsidiaries Tweed Inc. and Bedrocan Canada Inc., is a producer of medical marijuana under the Marijuana for Medical Purposes Regulations.

On Wednesday, Canopy Growth, which operated under the name Tweed Marijuana Inc. until earlier this month, said that it received Health Canada approval to begin cannabis cultivation in all 350,000 square feet of Tweed Farms’ facility’s growing space. Previously, Tweed Farms was only approved to grow at 35,000 square feet of its facility. The company believes that it now has more production space licensed than any other facility in the Canadian cannabis industry. Canopy Growth now has approvals for the 350,000 square feet at Tweed Farms, plus 168,000 square feet of licensed indoor production at Tweed Inc. and 55,000 square feet at Bedrocan Canada.

The company now has flexibility to scale with demand. Further, the company is positioning to streamline operations with the new approval. Currently, cannabis plants are cultivated at Tweed Farm’s facility and shipped to Tweed Inc.’s facility in Smiths Falls, Ontario for processing, storage and shipment to customers. The next phase of construction is on schedule to be completed in mid-November, which will integrate Tweed Farm’s facility for processes under one roof.

"We realized very early that diversified growing platforms would allow us to produce a greater range of products, some suited to indoor growing and others that thrive in a greenhouse environment," said Bruce Linton, Chairman and CEO of Canopy Growth, in today’s announcement. He added, "We can leverage the production capacity of the greenhouse to meet the needs of an evolving market that will increasingly require scale as we move closer to licensed cannabis oil sales and as more and more patients seek medicinal cannabis as a treatment option.”

Shares of CGC have slid from a high of $2.60 in February to a low of $1.15 in August before rebounding to a September high of $1.94. Today’s news has helped lift the stock from Tuesday’s close at $1.58, with shares up 3.8 percent at $1.64 as the afternoon session gets underway.

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