But hey, at least poison isn’t involved this time.
Hydropothecary, which isn’t public yet, though it does plan to RTO into BFK Capital Corp (BFK.P.V) soon, announced today they had run a voluntary recall on their weed in August of last year after it was discovered they had used the wrong kind of sulphur as a preventative measure to deal with mildew in their operation.
While Agrotek is approved for such uses by Health Canada under the ACMPR, the brand used by Hydropothecary was not. There is not believed to have been any risk to the public, unlike the Organigram (OGI.V) / Mettrum (MT.V) recalls of last month, and the Aurora (ACB.V) recall of Organigram-provided product last week.
Hydropothecary announced the recall, despite it having occurred six months ago, as fair disclosure after the recent raft of returned product hit the weed industry hard in the public eye.
Weed news site Lift broke the news after the company contacted it.
“We were non-compliant due to a human error, we took action around non-compliance and put systems in place so this will never happen again,” Dr Shane Morris told Lift. “We reached out to all 479 people within 72 hours, we provided all test results to those customers, we provided all the certificates of analysis showing all our product still passed all safety testing. There are no harmful residue levels from sulphur known, and this product is approved for organic food production.”
Good corporate governance, and a good sign leading into their public debut.
A copy of the letter sent to patients can be found here.
Hydropothecary recently ditched its former business model of premium priced weed aimed at a higher end consumer, a model we criticized a year ago when it was hanging at $30+ per gram. The company was initially intended to be the celebrity weed provider of choice, with music industry folks being walked through the facility in its early days.
When confronted with the price drop on Twitter, Morris told John Fowler, CEO of Supreme Pharmaceuticals (SL.C):
@john_fowler_jd@MarijuanaCa@Hydropothecary no, not at all…just lots more options for lots more people….
— Shane Morris (@DrShaneMorris) January 19, 2017
BFK has 2.7 million shares out. Assuming a shareholder meeting approves the RTO:
The Company also announces that concurrent with the execution of the Agreement,THC has completed a brokered private placement of 2,919,507 common shares in the capital ofTHC at a price of $4.50 per share for gross proceeds of $13.1 million. Canaccord Genuity Corp. acted as the agent in respect of the Financing.