Shares of Pyxus International Inc (NYSE:PYX) soared Tuesday after the North Carolina agriculture company announced that its indirect Canadian subsidiary, Goldleaf Pharm Inc, received a cultivation license from Health Canada.
Pyxus International stock shot up nearly 24% to $28.72.
The Access to Cannabis for Medical Purposes Regulations (ACMPR) cultivation license permits Goldleaf Pharm to begin cultivating medicinal cannabis at its Simcoe, Ontario facility.
"This is an important step, and an exciting time, for us at Goldleaf Pharm," Goldleaf Pharm co-founder Larry Huszczo, said in a statement.
"We have a state of the art 20,000 square foot indoor growing facility, and recently acquired 20-acres of adjacent property, giving us the ability to expand to more than 700,000 square feet of production space to cultivate cannabis. I am very proud of our team, which has worked diligently to meet Health Canada's requirements," he added.
Goldleaf Pharm is a subsidiary of Pyxus' indirect Canadian subsidiary, FIGR Inc. FIGR’s Charlottetown subsidiary, Canada's Island Garden also received a nod from Health Canada to sell medicinal cannabis oils.
Canada's Island Garden previously announced a supply agreement with the province of Prince Edward Island for 1,000 kilograms of cannabis products.
Pyxus International recently changed its name from Alliance One International, joining the ranks of the few other US-listed cannabis companies.
The North Carolina company offers products in the leaf tobacco, e-Liquids, industrial hemp and legal cannabis industries.
Contact Uttara Choudhury at [email protected]