Hydropothecary's Decarb Could Change the Way Cannabis is Consumed - CFN Media

Seattle, Washington--(Newsfile Corp. - November 8, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article covering the innovative product lines offered by The Hydropothecary Corporation (TSXV: THCX), focusing on the Decarb product line comprised of fine milled, activated medical marijuana powders.

Canada's cannabis industry is expected to reach $22.6 billion in size over the coming years, according to Deloitte, driven by the legalization of recreational marijuana next year. While the number of licensed producers has grown, the pace of licenses to extract, produce, and sell cannabis oil has lagged behind. This is concerning since the cannabis oil sector grew more than 871% between April 2016 and March 2017, according to Health Canada.

The Hydropothecary Corporation has one of about 20 licenses to produce and sell cannabis oils, but it's also focused on developing other non-flower products to address different patient populations. With many patients reluctant to smoke marijuana and many doctors looking for better options, the company believes that there's a much larger market for non-flower products that remains substantially untapped.

Taking A New Approach

Hydropothecary recently launched Decarb Micro THC and Decarb Micro CBD as ready-to-consume, activated medical marijuana powders. These products provide a much-needed alternative to smoking, vaping, and cannabis oils, while enabling consumers to adjust their consumption of medical cannabis through the intake of minimal amounts of THC or CBD. They can also be periodically used to maintain cannabinoid levels throughout the day. The two new Micro products add variety to the company's existing line of four Decarb products.

"This new release is the latest example of Hydropothecary's ongoing commitment to product innovation and our focus on customer needs," said Hydropothecary CEO Sebastien St-Louis in a recent press release. "Decarb Micro THC and Decarb Micro CBD ensure our clients have flexibility together with affordable, discreet, and easy-to-understand products."

At just $3 per gram, the new Decarb products are among the lowest priced premium cannabis products on the market and are much more cost-effective to produce than cannabis oils. An added benefit is that they aren't subject to the same restrictions as cannabis oils, which makes them easier to market and sell throughout Canada. These benefits could translate to higher revenue and profitability over the long-term as the product gains traction.

Hydropothecary's Unique Niche

Hydropothecary is one of only two licensed producers of medical cannabis under Health Canada's ACMPR program located in Quebec. Provincial cultivation restrictions, that are beginning to appear in other provinces, could create a barrier to entry for other licensed producers located elsewhere. Many Quebecois are also drawn to local companies rather than national brands, which could increase the company's appeal in the populous province.

With 20 medical marijuana products priced at $3 to $15 per gram, the company serves a wide range of patient populations, from mass-market consumers to discerning premium customers. The company's products are sun grown and rigorously tested for quality and purity to ensure that there are no recalls, which have had an adverse effect on many companies across Canada since the drug was legalized.

Hydropothecary operates with some of the lowest hydro costs in the market — especially compared to Ontario. This helps the company keep its costs extremely low relative to other licensed producers. At the same time, the company has initiated a dramatic production area expansion to 300,000 square feet, which could enable 25,000 kilograms per year of product. The goal is to leverage increased economies of scale to lower its marginal costs even more.

The company is also firmly committed to ongoing research and development to maintain their lead in the market. In addition to the Decarb product lines, the company's Elixir No. 1 was the country's first legal sublingual cannabis oil mist launched in July 2017. The company's ongoing innovation should help maintain a barrier to entry, while preserving relatively high profit margins as cannabis flower becomes increasingly commoditized.

The Bottom Line

The Hydropothecary Corporation (TSXV: THCX) is uniquely positioned for success in Canada's burgeoning cannabis industry. With innovative new products and a unique location, the company differentiates itself from many other companies in the space focused solely on scaling up grow operations.

Please follow the link to read the full article: http://www.cannabisfn.com/hydropothecarys-decarb-change-way-cannabis-consumed/

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CFN Media
Frank Lane
206-369-7050
flane@cannabisfn.com