According to the CEO of Quebec-based marijuana producer Hydropothecary (TSXV:THCX) (OTC:HYYDF), the French province is demanding 144 metric tons of cannabis once legalization is enacted in July.
In response to this potential order of over 317,000 pounds of weed, Hydropothecary has committed to producing 108 metric tons, with most of it earmarked for Quebec.
“I was sitting with the government of Quebec a few weeks ago,” said Hydropothecary CEO Sebastian St. Louis. “The parliamentary commission on marijuana legalization and the government expressed concern around the legal industry’s ability to supply quality marijuana to Quebecers. In response to that, their demand for Quebec alone was 144 [metric tons],” said St. Louis.
The CEO saw an opportunity to be the hero in this need for weed and decided to move on a deal. “That’s why in response, Hydropothecary has stepped up to the plate, has committed 108 [metric tons] of production with Quebec as our priority market.”
In order to meet its production commitment, Hydropothecary is expanding. The licensed producer has acquired 78 acres of land beside its 65-acre facility in Gatineau. On that property, a one-million square foot greenhouse will be constructed.
The expansion is expected to be completed by December 2018 and has an estimated cost of $80 million CAD.
St. Louis also let it slip that Quebec is working to achieve a lower price-point for legal pot than the national average of $10 per gram. He said the province hopes to achieve a price of $7-8 per gram.
“I think where Quebec has really differentiated itself and really been a leader here, has been to realize that pricing will be key in driving out the black market,” said St. Louis. “So they’ve actually targeted pricing between seven and eight dollars [per] gram, which is sufficient to start making some serious inroads into the black market.”
On Nov. 16, Quebec announced what is arguably the strictest cannabis regime in the nation, with a government monopoly on all cannabis retail locations, a complete prohibition of homegrown marijuana, and a zero-tolerance policy when driving.
This article was originally published on Marijuana.com.
About Jon Hiltz: Jonathan Hiltz has been a journalist, a TV producer and marijuana advocate for over sixteen years. He has a wife, two young children and lives in the Toronto area.