Today Hydropothecary (HEXO.T) announced their first harvest in their new 250,000 sq/ft greenhouse in Gatineau, Quebec. The project was budgeted at $25 million CAD.
“We are thrilled to announce that the first plants from our greenhouse expansion have been harvested” said Sebastien St-Louis, HEXO’s CEO and co-founder.
Big alcohol meets big cannabis
It’s clear that Hydropothecary is seeking to be one of the top dogs of the cannabis sector.
Last week Hydropothecary announced a joint venture with Molson Coors Canada to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization. The joint venture will be structured as a standalone start-up company with its own board of directors and an independent management team.
Molson Coors Canada will have a 57.5% controlling interest in the joint venture, with HEXO having the remaining ownership interest.
The transaction is set to close by September 30, 2018 subject to the satisfaction of certain conditions, including execution and delivery of various transaction agreements.
Hydropothecary generated $3,523,296 CAD in revenue last year, while Molson brought in $14,347,653 CAD.
On August 1st when the news was released Hydropothecary’s stock shot up $0.48 CAD on 15,237,157 shares traded.
Hydropothecary is one of a few cannabis companies who are climbing back to their all time high and currently have a P/BV of 2.85. They have $247,986,940 in cash after several large raises like the $130 million CAD bought deal with Cannacord in January.