Hydropothecary has more than 300,000 square feet of production capacity with an expansion more than three times that size to be completed by the end of the year.
Canopy Growth has previously expressed interest in opening up retail operations from its Smiths Falls headquarters.
Canadian Securities Exchange becomes the 'exchange of choice' for many U.S. cannabis companies
As legalization nears, some local pot firms believe small-scale producers could parallel the branding successes of craft beer, while others worry regulations will smoke out the little guys.
Canada is the first industrialized country to legalize cannabis nationwide.
The sale of edible cannabis products will not be legal immediately. But that hasn't stopped Canadian companies from entering the market.
Respondents to the survey say they expect to buy cannabis more often and are prepared to pay more for the legal product.
CannaRoyalty has been on an acquisition spree focused on cannabis producers in the California market
Firm is planning to construct a 50,000-square-foot growing area capable of producing 13,000 kilograms of cannabis annually.
Canopy also announced Monday that it would acquire the remaining stake in BC Tweed, a large-scale growing operation in British Columbia formed through a joint venture with an undisclosed partner.