With a hodgepodge of physical locations and online ordering options available across different provinces after the passage of the Cannabis Act, the question of supply and demand has loomed large in the minds of cannabis companies.

A study by the C.D. Howe Institute released prior to the Oct. 17 legalization date, for instance, showed that only between 30 – 60% of demand could possibly be met with current supply.

To catch up with the unparalleled demand for cannabis products in Canada, HEXO Corp. (TSE: HEXO) is currently expanding out to a 1,000,000 sq. ft. greenhouse on its Gatineau property.

The revamped greenhouse space is expected to increase the company’s production capacity to 108,000 kilograms of dried flower per year. The construction project is slated to be completed by the end of 2018 and will expand HEXO’s current 310,000 sq. ft. production facility for producing dried flower, oils, and pre-rolled cone products.

Besides the construction of additional production space, HEXO has been busy sending out repeated shipments throughout the weekend to meet re-supply orders as retailers run dry. CEO and co-founder Sébastien St-Louis issued this statement via press release to investors:

“We’ve been focused on executing all of our plans for several weeks, and I am proud that our team’s dedication and capability has meant that customers’ access to HEXO product has been dependable. Sales have been good, and we’ve been able to keep up. We said we were ready; now we have proved it.”

HEXO operates as a preferred supplier with the Société québécoise du cannabis (SQDC), and SQDC Vice-President of Supply Chain Jean-François Bergero further commented:

“HEXO has risen to the challenge of a much higher than anticipated demand during the first few days of legalization, and we are very pleased with their responsiveness. Thanks to HEXO’s preparedness, we have been able to provide and maintain customer service to the SQDC’s clients, even with this higher demand.”

Companies across the medical and recreational side of the industry issued statements to shareholders this past weekend to allay fears of shortages amid poor stock performance following legalization.

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