Canada’s two largest provinces revealed more about how they plan to buy and sell cannabis, sending pot stocks higher as investors get a better sense of future revenue.
New details emerged on Wednesday about the six previously announced supply agreements signed by Quebec, as Ontario made public its processes for procuring cannabis for recreational use.
The Quebec news lifted shares of the suppliers, including The Hydropothecary Corp., whose shares rose by 13 per cent to $4.02. The company said in a news release that it expects to sell about 200,000 kilograms of cannabis in Quebec’s recreational market during the next five years. The deal could be worth $1-billion in revenue for Hydropothecary.
MedReleaf Corp., another cannabis grower that has sealed a deal with Quebec, rose 7.5 per cent.
Hydropothecary is a Gatineau-based grower of medical cannabis. The company’s stock is listed on the TSX Venture Exchange and has a market capitalization of $722-million. In its last year, it generated $4-million in sales to patients. Sébastien St-Louis, chief executive officer, says Hydropothecary can produce 4,000 kg of cannabis