Quebec-based medical cannabis company The Hydropothecary Corporations (TSXV:THCX) has finally received its phase one licensing for a 250,000-square-foot greenhouse expansion from Health Canada.
The company has been preparing for the expansion for months and has more than 6,000 plants that are ready to be transferred over to the facility. Now that the development has been licensed, Hydropothecary can move the plants over immediately.
The license covers the first two zones of the company’s greenhouse expansion and Hydropothecary hopes that by year-end an additional one-million-square-foot expansion will be complete.
If everything goes to plan, the company will be producing approximately 108,000 kilograms of cannabis per year.
CEO and co-founder of Hyrdopothecary Corp, Sebastien St-Louis, has said that the expansion will help the company prepare for the adult-use recreational market:
“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.”
According to the company’s Master Grower Agnes Kwasniewska, who is also Canada’s first female Master Grower, Hyrdropothecary’s cultivation team is already preparing more plants to be moved into the new facility.
Shares of Hydropothecary Corp increased on Thursday after the announcement was made. The company was able to close at a share value of $5.02 CAD, or an increase of 0.80%, and reached a high of $5.05 and a low of $4.92.
Comparatively, Hydropothecary closed at a value of $4.98 on Wednesday.
As the cannabis industry grows, there will be a need for more greenhouse expansion, and it seems that there are already several companies who want to get ahead of the impending adult-use recreational cannabis market.
Do you think companies like Hydropothecary Corp are right to start expanding as soon as possible?
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