NEWS- Hydropothecary Increasing Production CapacityNothing New. Obviously, it's a reaction to Canopy's announcement. 2017-12-19 09:00 ET - News Release Seattle, Washington--(Newsfile Corp. - December 19, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article covering The Hydropothecary Corporation's (TSXV: THCX) recently announced expansion plans, unique advantages in the industry, and its progress in developing and launching award-winning products into the market.
There are more than 70 licensed producers approved by Health Canada, with roughly 30 approved to sell and produce marijuana, but not all licensed producers are the same. While some are focused on scaling up operations to meet recreational demand, others are focused on developing medical therapeutics or innovative products that could boost margins over the long-run. The Hydropothecary Corporation represents a mix of the two.
Newly Acquired Land
The Hydropothecary Corporation recently announced the acquisition of 78 acres of land adjacent to its existing 65 acre facility in Gatineau, QC. The company plans to build a new 1 million sq. ft. greenhouse on the land, which management expects to be completed by December 2018. This new expansion will increase its production capacity to 108,000 kilograms of dried cannabis per year.
"Hydropothecary is boldly stepping forward to take the lead in the Canadian cannabis industry," said Co-Founder and CEO Sebastien St-Louis. "With our expansion, we are moving into industrial agri-nomics, robotic technology, fully automated systems, and the cannabis plant as a THC bioreactor. Once legalization of the adult-use recreational market becomes a reality, Hydropothecary will be ready."
The cost of the expansion project is estimated to be $80 million, which will be fully-funded through the company's treasury. Once completed, the company will become one of the largest licensed producers of medical cannabis in Canada. This, in addition to being the only licensed producer in Quebec to be headquartered in Quebec (there are only two licensed producers in the province. With a population of 8.4 million, Quebec is the second most populous Canadian province after Ontario. Among the many unique attributes of the province's inhabitants is a well known preference for local products and businesses.
Current Expansion is On-Schedule
Hydropothecary's current project - a 250,000 sq. ft. greenhouse complex - is on budget and on time. After breaking ground on October 12, the company expects to complete the facility by July 2018. This expansion that will increase its overall facility size to 300,000 sq. ft. and boost its annual production capacity to 25,000 kg per year. The facility is fully-funded by its cash on hand.
Focus on innovation
During fiscal 2017, the company shipped 404,158 grams of medical cannabis and generated $4.1 million in revenue. The company also completed a new 35,000 sq. ft. greenhouse that increased its production capacity from 600 kg per year to 3,600 kg per year and launched three new product offerings. These products included Decarb - a novel, pre-activated cannabis capsule - and Elixir No. 1 - Canada's only sublingual cannabis oil spray.
In addition to being one of the Canada's top producers of cannabis, Hydropothecary is also focused on product development and innovation. In response to the demands of its clients and the experiences of US states where cannabis is legal, the company has targeted the development of delivery systems that do not require smoking of cannabis flower.
In December 2017, Hydropothecary's focus was acknowledged by its industry peers at the inaugural Canadian Cannabis Awards, where the company's Decarb and Elixir products were awarded the Best New Cannabis Product. Decarb took first place for its innovative ready-to-consume nature, while Elixir was awarded third place as the only peppermint based medical cannabis oil sublingual mist on the market. Hydropothecary was among more than 800 guests, including licensed producers, industry representatives, and members of the investment community.
Looking Ahead
The combination of low cost, innovative products, an excellent location, and high scalability make The Hydropothecary Corporation (TSX-V: THCX) an attractive opportunity in Canada's burgeoning market, particularly as the company looks to dramatically expand its production footprint.
Please follow the link to read the full article: https://www.cannabisfn.com/hydropothecary-increasing-production-capacity-108000-kilograms-construction-completed-year-end-2018/
For more information, visit the company's investor website at www.thcx.com.