In the latest marijuana stocks news, Canopy Growth stock (NYSE:CGC) was soaring on Monday as the company announced that it will acquire U.S.-based hemp company ebbu.

Canopy Growth told its investors that it will purchase an Evergreen, Colorado-based, which will “complement and accelerate” the company’s ambitions to expand into new areas of consumer products. The company said that, at closing, it will pay 25 million Canadian dollars in cash and issue 6,221,210 common shares to ebbu in exchange for the majority of its assets.

“Intellectual property and research and development advancements achieved by ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities,” Canopy Growth wrote in a press release.

Ebbu’s main line of business is the purification and study of cannabinoids for the purpose of product development, wholesale and research purposes, its website claims. The company also uses patented plant genetics to maximize cannabinoid output by “boosting in-plant cannabinoid production and creating rare-cannabinoid-specific plants.”

The move is designed to aid Canopy’s current hemp operations in Saskatchewan, Canada, which is also an opportunity for Canopy to lower the cost of its cannabidiol (CBD) production thanks to ebbu’s intellectual property. It will also help the company in its entry to the U.S.

CGC shares were soaring more than 9.6% on Monday following the news.