Canopy Growth Corp. (TSX:WEED) says about one-third of its customers want moderate to high levels of THC, the psychoactive chemical in marijuana, and they’re willing to pay a premium price for it.
“And we really didn’t have that in the (October-December) quarter – almost ever,” CEO Bruce Linton said Tuesday on a conference call after the company reported its third-quarter results.
Mr. Linton said Canopy Growth has been hurrying to meet demand, expanding its production capacity and acquiring other producers. It also saw its medical marijuana patient base balloon to 29,000 at the end of last year from 8,000 as of Dec. 31, 2015.
To meet demand, Canopy Growth has been developing a medical marijuana product containing 27 per cent THC over the last 18 months. It’s awaiting regulatory approval to start production.
The company also reported $1 million in sales in a single day for the first time, on Feb. 1, a remarkable number considering total revenue during the third quarter was less than $10 million.
“We had a fairly substantial amount of some reasonably pricey and high-THC products that were eaten up,” Mr. Linton said.