Less than a week after Health Canada removed limits on how much pot it could produce, Gatineau-based Hydropothecary (TSX-V:THCX) says it’s raising $20 million in new financing.
The firm said Tuesday that it had entered into an agreement with its longtime financing partner, Canaccord Genuity Corp., and a syndicate of underwriters to raise the money via a private placement.
Last week, Health Canada approved two new buildings at Hydropothecary’s Gatineau facilities and granted the pot producer a licence renewal to grow and sell as much cannabis as it can store.
OBJ360 (Sponsored)
Is your company a Best Place to Work?
Even in uncertain economic times, you can take this to the bank. The most successful companies are those with the highest employee engagement. That’s why the Ottawa Business Journal and
Why your next investment should be Canadian art
Ahead of its highly anticipated Give to Get Art Auction on May 29th, the Ottawa Art Gallery (OAG) offers some expert advice on investing in art. Art can inspire, spark
A Hydropothecary spokesperson said Tuesday that the loosened restrictions signal a major move on the part of Health Canada to fast-track industry expansion ahead of the federal government’s plans to legalize marijuana for recreational use by July 2018.
The move came as Ontario Finance Minister Charles Sousa was quoted as saying that he expects a shortage of marijuana when it’s legalized, echoing previous comments by financial analysts.
Hydropothecary’s stock price was down 9.5 per cent, or 15 cents per share, to $1.43 in late-afternoon trading on the TSX Venture Exchange.
