The partnership, known as Archipelago Ventures, pairs Arcadia’s genetic expertise and cultivation facility in Hawaii with Legacy’s extraction and sales experience.
Together, Archipelago will have access to a vertically-integrated supply chain, giving it control of the hemp extract production process from seed to sale. The companies expect sales to begin in late 2019.
Legacy also offers Arcadia access to its equity partner, Vapen CBD, an Arizona-based producer of cannabis distillates and oils. Vapen will oversee the construction and operation of the venture’s hemp extraction facilities.
The companies believe Hawaii’s geography and climate will give it an edge over mainland growers.
"Hawaii has special significance for Arcadia; it's where we first began our hemp research and cultivation, and it's where we continue to see the greatest opportunity for innovation and growth in industrial hemp," said Arcadia President Matt Plavan.
Arcadia stock climbed 7.3% to $2.08 Tuesday morning.
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