The Canadian marijuana money train continued its powerful thrust forward as another licensed producer went public on Tuesday, March 21, 2017.
Quebec-based Licensed Producer (LP) Hydropothecary, currently the only producer in Canada’s French province, joined the TSX Venture Exchange through a reverse takeover by BFK Capital Corp. Shares of Hydropothecary opened at $1.82 and closed the day at $1.55.
This latest IPO is a further example of the red-hot marijuana market in Canada as the country prepares for a national, federally sponsored adult-use cannabis sector. Hydropothecary joins the ranks of other traded LPs including marijuana giant Canopy Growth Corporation, OrganiGram, Aphria, and Aurora Cannabis, to name a few.
“We really decided to do it because of our forecasting for the legalization of a recreational market,” said CEO Sebastian St. Louis. “We want to be ready and on the capital markets.”
Hydropothecary’s revenue was $1.1 million in the last quarter and their patient count has increased due to the introduction of lower priced strains which average between $7.25 to $10 per gram. This reduction has also lead to customers buying more of their $15 per gram products.
Despite the excitement surrounding the world’s first G7 country legalizing this long-suffering plant, the Canadian Government recently indicated that adult-use pot sales probably won’t be ready anytime soon. This sentiment was reiterated by Member of Parliament Bill Blair, who is also Prime Minister Trudeau’s point man on all things marijuana. In a statement to Bloomberg Magazine earlier this month, the former Toronto police chief said that the bill, which is due in the spring, will not be the final hurdle to bring pot to the public market.
All delays aside, licensed producers across the great white north are clearly experiencing a honeymoon period, long before the actual marriage takes hold.
Congratulations to Hydropothecary.