CFN Media Group, a creative agency and media network, annouced publication of an article covering The Hydropothecary Corporation’s recently signed letter of intent to supply its home province of Quebec with 20,000 kilograms (44,092.5 pounds) of cannabis products in the first year of legalization. That is the largest supply agreement announced in Canada to date, and the company says it is just the beginning.
According to Deloitte, Canada’s cannabis industry is projected to reach C$22.6 billion ($17.5 billion) over the coming years. With recreational cannabis expected to be available by mid-August, provinces have been crafting the rules that will govern the distribution, sale, and consumption of cannabis within their borders. These rules will vary widely between provinces, with some adopting a public retail model and others choosing a public-private retail system.
Quebec has opted for the public model and has tasked the provincial liquor authority, the Société des alcools du Québec (SAQ), with setting up the public corporation responsible for cannabis retail and distribution, the Société Québecoise du Cannabis (SQdC). The SQdC will be the only cannabis retailer in the province, operating from both physical locations and an online store. Starting with 15 stores, the SQdC is expected to rapidly ramp-up to 150+ stores in the first two years.
With Quebec expecting to sell just under 58,000 kg (127,868 pounds) of cannabis in the first year of legalization, Hydropothecary’s letter of intent for 20,000 kg (44,092.5 pounds) represents 35 percent of projected market demand in the province. But more than that, the agreement demonstrates the province’s confidence in the company’s ability not only to meet local demand, but to play a crucial role in establishing Quebec as a leader in the newly-developing cannabis business at home and abroad.
“This supply arrangement is an important step for Hydropothecary,” said CEO Sébastien St-Louis in a press release announcing the deal. “We are honoured by the opportunity to supply cannabis in our home province and we want Quebecers to know that we are committed to providing safe and high-quality products for the adult-use recreational market.”
(Source: GlobeNewswire)
Filed Under: Drug Discovery
