Canopy Growth Corp has launched its CBD-infused Quatreau sparkling water line in the United States, as it seeks to secure a firm footing in the country's rapidly growing cannabis market ahead of expected reforms under President Joe Biden.
The company's US-listed shares, up 41% through Monday's close, rose 1.5% in premarket trading on the Nasdaq.
After years of oversupply woes in Canada, cannabis producers are banking on the much larger US market opening up soon as leading Democrats lend support to laws allowing easier banking access, decriminalisation of marijuana and other favourable changes.
Canopy president and chief product officer Rade Kovacevic told Reuters that the US market is currently fragmented, presenting an opportunity for a larger company to scale up in the region.
Quatreau comes in four variants and would be available for online sales in US states that permit consumption of cannabidiol (CBD), Canopy said.
A non-psychoactive compound derived mainly from the hemp plant, CBD is being researched for various medical applications and has found increased use as a relaxative.
While 36 US states and four other territories have approved cannabis for medical use, 11 more have passed laws allowing the use of CBD extract, usually in oil form, with minimal or no tetrahydrocannabinol (THC), according to the National Conference of State Legislatures.
Canopy said Quatreau is now the top-selling CBD beverage in Canada within months of its launch there, as demand for cannabis-infused edibles surged during COVID-19 lockdowns.