Medical marijuana producer Canopy Growth Corp. has been expanding its growing facilities to keep up with demand, as the company's client base grew 47 per cent during the quarter.
Canopy (TSX:CGC) says it had over 24,400 registered patients at the end of September, up from over 16,600 during the previous quarter and 6,200 a year ago.
The company released the new patient figures as it reported a profit of $5.4 million or a nickel per diluted share for the quarter ended Sept. 30.
The result compared with a profit of $3.9 million or a nickel per diluted share in the same quarter last year when it had fewer shares outstanding.
Revenue in what was its second quarter totalled nearly $8.5 million, up from nearly $2.5 million in the same quarter last year.
During a conference call to discuss the company's quarterly results, CEO Bruce Linton emphasized the company's efforts to expand its production capacity to keep up with demand.
Canopy expects to more than double the amount of marijuana it's producing at its Smiths Falls facility over the next six months, Linton said.
The company also recently entered the Quebec market by acquiring Vert Medical and has teamed up with real estate firm Goldman Group in a partnership that will help the marijuana producer expand its operations.
Inventory has been limited in the industry overall as the number of patients registered with Health Canada has risen rapidly.
At the end of last June there were 75,166 patients registered with Health Canada to purchase medical marijuana from one of the licensed producers, an increase of 40 per cent compared to the previous quarter.
Linton says Canopy has been fielding calls from other licensed producers who have run out of inventory and are looking to purchase some on a wholesale basis to resell to their patients.
"Supply is tight, and I think supply will continue to be tight as we go through 2017 and 2018," Linton said.