Higher than expected demand forces Tweed Marijuana to stop taking customers

OBJ Staff
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Tweed Marijuana (TSX-V:TWD) says demand for its medicinal product is growing faster than expected, forcing the company to speed up its plan to increase capacity and to temporarily stop taking new orders.

(Stock photo)

The company says that based on the number of registrations and applications received from potential customers it now plans to quadruple the amount of marijuana it can grow by the end of 2014.

That increase, from 1.5 million grams to six million grams a year, was originally scheduled to be finished by the end of 2015.

“This will require an increase in capital expenditures and construction related expenses,” the company said in a press release.

But even with the expedited plan to scale-up, Tweed says it has reached capacity and that to “ensure sufficient supply” for customers who have already signed up, it will temporarily stop processing new applications from customers.

“While Tweed will continue to accept new applications, we will not proceed to register new customers until we can be certain that we have sufficient supply to meet demand,” the company said.

It’s unclear when the company will begin accepting new customers again. It plans to double current production capacity by the end of August, though it warns that it will take an additional eight to 12 weeks before those additional plants are ready to ship.

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  • fennecby
    April 23, 2014 - 13:45

    Got your numbers all wrong, guys. The increase would actually be from 15k kilograms to 60k kilograms - i.e. from FIFTEEN to SIXTY million grams. Otherwise it would make no sense for a company selling 50-150 million dollars at full capacity to trade at a 125 million dollars market cap.