Welcome to our Discover Cannabis series, where we publish in-depth research reports for companies that have not been covered before by us. We plan to initially cover at least 25 new names which we believe would be greatly beneficial for investors looking for opportunities in the cannabis sector.
Today we are introducing Hydropothecary (OTC:HYYDF) as part of the top 20 cannabis players under our watch. Hydropothecary (“THC”) is the largest licensed producer based in the province of Quebec and is uniquely positioned to become the dominant supplier for the second largest province in Canada and potentially other provinces. We think investors should understand the company’s dominance in Quebec and also its potential outside the province given the upcoming capacity and impressive product developments.
THC was founded in August 2013 in Quebec and received its first cultivation license in November 2014. The license was amended to include cannabis sales in May 2015 and later that year THC completed the 7,000 square feet facility greenhouse facility it uses to produce cannabis. In December 2016, THC completed another 35,000 square feet facility and launched an RTO to access the public markets. In March 2017, THC was licensed to sell cannabis oil and later in the month completed the RTO to become a publically traded company on the TSX Venture exchange. We look forward to seeing the shares listed on the main TSX exchange at some point which will result in improved disclosure and enhanced liquidity for the shares.
The operations of THC is centrally located in Quebec, a strategy similar to several other players. The company has proudly said that its Quebec location provided several advantages including lower utilities and construction costs.
THC’s current facility has an annual capacity of 3,600 kg. The first expansion is