Santa Fe Farms of New Mexico has bought a Colorado hemp-genetics firm to establish a line of propietary genetics.

High Grade Hemp Seed of Longmont, Colorado, will retain its name and location but will become a subsidiary of Santa Fe Farms, which grows hemp on about 200 acres but does not have its own line of genetics.

The companies said in a statement that they’ll prioritize developing hemp varieties “that will adapt to climate change,” in addition to looking for market opportunities.

Both firms are privately held, and terms of the acquisition were not announced.

A New Mexico district court has invalidated the state’s hemp production rules that allowed regulators to revoke or suspend licenses without notice and imposed strict testing requirements.

Santa Fe District Court Judge Bryan Biedscheid said the New Mexico Department of Health’s rules were invalid because the agency failed to consult with the Medical Cannabis Advisory Board as required by state law.

The ruling came in response legal action from New Mexico cannabis company Ultra Health, cannabis news site The Candid Chronicle first reported.

Duke Rodriguez, the company’s president, said the judge’s ruling shows “the department may not attempt to promulgate any rules it wishes without fully consulting stakeholders and providing substantial evidence for such changes.”

He said the state must issue rules that keeps prices low for medical cannabis patients.