The provincial government in Quebec is looking to keep its recreational cannabis in-house, as they near signing a supply deal with Hydropothecary, Quebec’s largest grower of marijuana.
However, those same people couldn’t have been more wrong as Quebec’s provincial government took a turn and announced the most conservative and restricting plan yet.
Not only that the government will control all legal sales of cannabis, but you also won’t be able to grow any plants at home either.
Hydropothecary co-founder and CEO Sebastien St. Louis said the following in an interview:
“I was sitting with the government of Quebec a few weeks ago, 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 tons.”
This comes off as a huge piece of the weed cake, as the whole country’s demand is projected to be around 422 tons per year.
Hydropothecary to increase their production
Seeing how Quebec is most likely to keep their supply lines local, Hydropothecary will be required to step up big time.
And step up they did.
Last week Hydropothecary acquired 78 acres of land beside its existing 65-acre facility in Gatineau.
It also said it will construct a new one-million-square-foot greenhouse, increasing its production capacity to 108,000 kg of dried cannabis per year.
Sebastien St. Louis said after the meeting with the government of Quebec the following:
“Hydropothecary has stepped up to the plate, and committed 108 tonnes of production to Quebec as our priority market.”
The expansion of their facilities is expected to be completed by December, 2018 and is slated to cost Hydropothecary an estimated $80 million.
However, St. Louis has made it very clear that the talks are not completed yet, and the supply deal is not signed yet:
“Those talks are progressing very well and our commitment is to help the government achieve its goals of public safety and responsible supply of quality marijuana.”
So far it seems that Quebec will have cheaper weed than other provinces if nothing else.
St. Louis noted that the government of Quebec is aiming for a $7-8 per gram price for all stores in which the Crown Corp will be doing sales.
The government sees this as one of the few viable ways through which it will put the black market out of sales.