The Hydropothecary Corporation (TSXV:THCX), a Canadian marijuana stock, said the first two zones of its 250,000 sq. ft. greenhouse expansion is now licensed by Health Canada
SmallCapPower | June 18, 2018: The Hydropothecary Corporation (TSXV:THCX), a Quebec-based Canadian marijuana stock, announced on Thursday that the first two zones of its 250,000 sq. ft. greenhouse expansion is now licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations, which allows the Company to grow plants there immediately. This, along with the 1 million sq. ft. expansion set to be complete by year end, will bring total production capacity up to 1.3 million sq. ft. and will allow Hydropothecary to produce 108,000 kgs of dried cannabis annually.
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Unlike other cannabis producers that are focused on either scale or developing pharmaceutical-grade products, Hydropothecary Corporation is focused on both product innovation and scaling up its operations. Hydropothecary offers a total of 22 medical cannabis products under four product lines – Decarb, H2, Time of Day, and Elixir. Along with its innovative product lines, the Company is also one of the country’s lowest-cost producers, which is rapidly increasing its production capacity to reach 108,000 kgs by March 2019. With such a capacity profile, Hydropothecary will supply the recreational cannabis markets in Canada and elsewhere under its newly-launched HEXO brand and will continue to serve medical cannabis clients under its original Hydropothecary brand.
Hydropothecary CEO and Co-Founder Sebastien St-Louis said, “Receiving licensing for the first two zones demonstrates our team’s outstanding execution. This planned expansion allows us to continue to ramp up production in preparation for the adult-use recreational market, as Quebec’s preferred supplier, while continuing to serve the growing medical market.”
With its dual focus of product innovation and production scaling along with a strategic Quebec location, Hydropothecary is well positioned to capture the large market opportunity for both medical and recreational cannabis. Hydropothecary has at a market cap of $958.82 million, compared to its larger peers that are trading at market caps in excess of $2.5 billion.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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