Hydropothecary Corporation Set to Launch First Marijuana Mouth Mist

Hydropothecary Corporation (TSXV: THCX) expects to ship the only legal medical marijuana under the tongue mist by the end of July

SmallCapPower | July 27, 2017: The Hydropothecary Corporation (TSXV: THCX) announced on July 25, 2017, that it will launch Elixir No. 1, the only legal medical marijuana sublingual (under tongue) mist for $89 a bottle. This product is well placed to take advantage of health conscious consumers who are non-smokers.

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Elixir No. 1 is a natural peppermint oil base, with the maximum allowable THC level of 30mg/ml for cannabis oil under Canadian regulations. It has received approvals under the Access to Cannabis for Medical Purposes Regulations (ACMPR) by Health Canada. Hydropothecary expects to start shipping the product on July 31, 2017.

The mist can be consumed in multiple ways, can be taken orally (sprayed under the tongue) or mixed with food or drinks, and provides a discreet, convenient and ready to use alternative to dried medical marijuana products.

Hydropothecary is the only Quebec-based licensed producer of medical marijuana. In its latest reported quarter (Q3), the Company revealed that its cash cost of inventory per gram fell to $1.32 from $1.47 in the previous quarter. Hydropothecary also announced that the number of full-time employees increased by 50% quarter over quarter as it prepares for the construction of ‘Building 6’, its new 250,000 sq. ft. production facility. The ability of Hydropothecary to sell cannabis oils, and now mouth mist, is a positive as these are higher-margin products.

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Hydropothecary is trading at significant discount when compared to peer cannabis companies. The Company’s price to sales multiple is 16.83x, which is attractive compared to the peer average of ~50.0x.

Post the listing on the TSX Venture Exchange on March 22, 2017, Hydropothecary shares have declined ~50% from the highs of $2.79 per share. Hydropothecary has seem to put the concerns of unapproved pesticides (Myclobutanil) behind them, and investors hope long-term share price appreciation can be built from this level.

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