HEXO will be grown for the recreational market at The Hydropothecary Corporation’s (TSXV:THCX) expanding facilities in Gatineau, Quebec
SmallCapPower | May 28, 2018: The Hydropothecary Corporation (TSXV:THCX) launched a new cannabis brand, ‘HEXO’, on Thursday for the recreational cannabis market. For the medical cannabis market, the Company will continue to use its existing Hydropothecary brand. Production of cannabis will continue for both brands at the Company’s expanding facilities located in Gatineau, Quebec. With the launch happening at the Lift Cannabis Expo (May 25-27) in Toronto, Ontario, the new brand shares the first letter ‘H’ with the medical cannabis brand, while adding EXO, meaning outer or external.
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The launch of this recreational brand is in preparation for the upcoming recreational legalization and follows Hydropothecary’s landmark agreement with Société des alcools du Québec (SAQ) last month for the supply of over 200,000 kgs of cannabis products over five years for the recreational market. Hydropothecary will supply 20,000 kg of cannabis in the first year, 35,000 kg in the second year and 45,000 kg in the third year, with the volume for the final two years to be decided later. As per Company estimates, sales in Year 1 will represent 7.9% of the total Canadian market.
Hydropothecary also announced that it has applied for an up listing to the Toronto Stock Exchange (TSX) from the current TSXV. Subject to approval, the up listing would place Hydropothecary among a select group of cannabis stocks (Canopy Growth, Aurora Cannabis, Aphria, MedReleaf) on the TSX and improves the Company’s visibility within the investor community in Canada as well as globally.
Read: Canadian Cannabis Stocks That Are Top Takeover Targets
Headquartered in Quebec, Hydropothecary is a premium producer of cannabis, focused on product innovation and quality. With ambitious expansion plans, Hydropothecary would be among the top cannabis producers in Canada with a total capacity of 100,000 kgs per annum by the end of December 2018. Hydropothecary currently trades at a market cap of ~$1.0 billion.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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