Hydropothecary Corporation Issues Voluntary Stop-Sale of Cannabis

GATINEAU, QC–(Marketwired – May 02, 2017) – The Hydropothecary Corporation (TSX VENTURE: THCX) (“THCX” or the “Company”) today announced a voluntary stop-sale and stop-shipment on all products.

This action was taken as a precautionary measure immediately following a Health Canada notification at 6:07 pm (EDT) on May 1, 2017, that test results of cannabis leaf samples taken on March 8, 2017, indicated the presence of myclobutanil, a general use fungicide registered for use on a wide range of food crops but which is not approved for use on cannabis The results indicate levels of 0.023 parts per million (ppm) and 0.012 ppm. Hydropothecary notes that it has been conducting voluntary pesticide testing on all lotted products since February 2, 2017, through a certified third party laboratory. All such pesticide test results have been negative for pesticides at a level of 0.05 ppm. THCX’s testing program was developed on industry advice from Health Canada and industry norms. The source of the myclobutanil is unknown and the Company is conducting a review to determine the source of the pesticide. The Company has not received any serious adverse reaction reports related to its products.

“Health Canada’s testing results indicate the levels of myclobutanil found are at exceptionally low levels. This is not likely to cause any adverse health consequences. This risk level is consistent with Health Canada’s recent memo on the matter (see link below). Hydropothecary is currently carrying out an in depth investigation into this serious matter with a broad range of testing underway. Our stop-sale is a precautionary measure intended to provide the utmost transparency to all involved and to ensure our patients are completely confident in the safety of our products and production system.” said Dr. Shane Morris, VP Quality Assurance & Scientific Affairs. “This is an evolving matter and we are working closely with Health Canada to determine the next steps.”

“THCX intends to release test results of all pesticide testing since February 2, 2017, within the next 24 hours, to provide reassurance to its clients and the public. We also intend to keep our clients fully informed as this matter progresses and provide daily updates on Hydropothecary’s website (starting May 2, 2017). As always, Hydropothecary’s first priority is to protect the health and safety of our patients.”

Clarification from Health Canada on myclobutanil and cannabis (March 9, 2017):


About The Hydropothecary Corporation

The Hydropothecary Corporation is an authorized licensed producer and distributor of medical cannabis licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (Canada). Hydropothecary provides naturally grown and rigorously tested medical cannabis of uncompromising quality. Hydropothecary’s branding, cannabis product offering, patient service standards and product pricing are consistent with THCX’s positioning as a premium brand for a legal source for medical cannabis within this new marketplace. In addition to medical cannabis production and sales, Hydropothecary explores various research and development opportunities for cannabinoid extracts, drugs and combinatory chemistry. In addition, the company is investigating the development and patenting of novel technologies related to medical cannabis, as well as the import and export of medical cannabis.

Forward-Looking Information

This press release contains forward-looking information based on current expectations. Examples of such forward-looking information include statements about future operational and production capacity, the impact of enhanced facilities and production capabilities, and expected available product selection. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, including factors such as the ability to finance the proposed expansion through internal and/or external sources. The company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:
Jennifer Smith
Manager of Financial Reporting and Investor Relations
The Hydropothecary Corporation
1-866-438-THCX (8429)

Source: Nasdaq