GATINEAU, Que. — Shares of Hydropothecary Corp. were up nearly 18 per cent after the licensed medical cannabis producer announced plans that will see it further grow its operations in Quebec.
The company (TSXV:THCX) says it has acquired property adjacent to its existing facility in Gatineau, Que., to construct a new 93,000-square-metre greenhouse, increasing its production capacity to 108,000 kilograms of dried cannabis per year.
The expansion will bring the company’s total production capacity to about 121,000 sq. m of cultivation and manufacturing labs, with the expansion expected to be completed in one year.
Vahan Ajamian, a research analyst with Beacon Securities Ltd., says the expansion would put Hydropothecary Corp. among the top three producers in Canada.
The company currently has a production capacity of about 4,600 sq. m and produces about 3,600 kg of dried cannabis per year. An expansion announced in October will see the company increase it production capacity by about 23,000 sq. m by next July, after which it’s expected to produce about 26,000 kg annually.
CEO Sebastien St-Louis says costs for the new expansion to be completed next December, which are expected to be $80 million, will be funded through the company’s current financial resources.
The addition is expected to create up to 100 jobs during construction, with another 100 positions forecast for the operation of the new facility.
This is on top of 100 jobs which will be created when the company’s $25 million, 23,000 sq. m greenhouse expansion becomes operational in July.
Shares of Hydropothecary were up 62 cents, or 17.82 per cent, to $4.10 in early afternoon trading on the TSX Venture Exchange.