The Hydropothecary Corporation (TSX:HEXO) said it has completed the first harvest from its new 250,000 sq. ft. greenhouse
SmallCapPower | August 14, 2018: The Hydropothecary Corporation (TSX:HEXO) Thursday announced the first harvest of its plants from its new 250,000 sq. ft. greenhouse. Hydropothecary is on track to execute its expansion plan at its Gatineau campus. HEXO’s 250,000 sq. ft. greenhouse expansion, together with the manufacturing expansion, brings the Company’s total production space to over 310,000 sq. ft. The Company has mentioned that the construction of its one million square foot facility would be completed by year-end 2018.
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Hydropothecary Corporation CEO and Co-Founder Sebastien St-Louis said, “We are thrilled to announce that the first plants from our greenhouse expansion have been harvested. This is a clear demonstration of HEXO’s ongoing execution of our continual harvest strategy, which sees new plants being harvested every week.”
The Hydropothecary Corporation operates as a medical marijuana company. The Company produces and distributes marijuana for medical purposes. HEXO creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. It is one of the country’s lowest-cost producers. Hydropothecary is rapidly increasing its production capacity in the lead up to the legal adult-use recreational cannabis market in Canada expected in October 2018. Hydropothecary will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand. HEXO’s smoke-free product portfolio is a rapidly-growing segment of the cannabis market with products such as Elixir CBD Peppermint, Elixir THC Peppermint and Fleur de Lune.
Hydropothecary also announced recently an agreement with Molson Coors Canada, the Canadian business unit of Molson Coors Brewing Company (NYSE:TAP), to form a Joint Venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following the legalization of consumable cannabis, which is expected to be legally permissible in Canada in 2019.
Hydropothecary Corp. trades at a market capitalization of $855.5 million with a price to book multiple of 2.73x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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