Tweed Looks to Control Nearly Half of Canadian Cannabis Market
By Ryan Allway | cannabisfn.com
The Canadian medical cannabis industry is expected to reach $1.3 billion in size by 2024, according to Health Canada, with over 400,000 patients joining over the next nine years. With about 16 licensed producers under the new MMPR program, the market has been heating up following the Canadian Supreme Court’s ruling that cleared away at least some of the concerns related to the program and opened the door to wide-scale production and sales activity.
Tweed Marijuana Inc. (TSX-V: TWD) (OTC: TWMJF) became the first publicly-traded, federally-regulated cannabis company in North America after becoming a licensed producer under the MMPR. With a 180,000 sq. ft. facility in Smith Falls, Ontario and a second 350,000 sq. ft. facility in Niagara-on-the-Lake, Ontario, the company has been licensed to produce up to 3,500 kg of medical marijuana per year, although it is only starting to realize that potential.
The company began shipping product to customers in May of 2014 from the Smith Falls facility. It is currently charging $6-12 per gram and operating at 40% of its anticipated peak capacity at that location. The larger Tweed Farm operation located in Niagara-on-the-Lake began shipping product in December of 2014, but operates at just 10% of its anticipated peak capacity as the company works to ramp up its operations.
During the first quarter of 2015, the company reported revenue that increased 39% over last quarter to $1,710,157, driven by a 29.56% increase in production and a 6.76% increase in the average price per gram. Net income came in at just over $1 million, or $0.02 per share, driven by gains on the changes in fair value of biological assets, while the company reported cash and equivalents of over $15 million, as of June 30, 2015.
In a recent interview, CannabisFN’s Mike Elliott met with CEO Bruce Linton to discuss the company’s background and what sets it apart from the competition, as well as the company’s acquisition of Bedrocan Canada.
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