Canadian Cannabis Company Will Sell Marijuana For Less Than $5 Per Gram

These could be the lowest prices ever.
New Regulations May Spark Canada’s Craft Cannabis Revolution

Weed smokers living in Quebec are about to see much lower prices in the legal market. Starting tomorrow, cannabis company HEXO is rolling out a new line of ultra-affordable flower.

Ultimately, the new product line will give Canadians a chance to purchase larger quantities of weed. Additionally, the weed will be sold at super-low prices that work out to be less than $5 per gram.

HEXO Introduces “Original Stash”

The new line of flower from HEXO is called Original Stash. According to a press release from the company, Original Stash will come in one-ounce packages.

That’s a marked difference from traditional weed sales, which typically sell in smaller eighth-ounce quantities.

The new line of smokable flower isn’t only focused on selling in larger packages. It will also offer much lower prices than those typically seen in the legal market. Specifically, HEXO will sell the one-ounce packages of flower for $125.70, including sales tax. That works out to $4.49 per gram.

For now, HEXO will start with a hybrid sativa strain. The company calls this pilot strain OS.210. And HEXO reports that the strain comes in at 12-18 percent THC.

Trying to Undercut the Illegal Market

HEXO developed this new line of dried flower primarily to compete with—and ultimately undercut—the illegal marijuana market. The company said that the price point was calculated to compete with black market prices.

“It is becoming increasingly difficult for the average consumer to distinguish products that are legal, versus those that are not,” HEXO CEO and co-founder Sebastien St-Louis said in the press release. “Our aim with Original Stash is to disrupt the illicit market, educate consumers about the value of a regulated and tested product, and drive them to purchase their cannabis legally.”

He added: “We’re now competing directly with the illicit market and providing consumers with an affordable, controlled, quality product. Moreover, we are giving consumers the option of less packaging in a 1 oz format, which we know is a priority for so many.”

Consumers Might Not Know They’re Buying Illegal Weed

Recreational marijuana has been legal in all of Canada for over a year now. Despite this, surveys show that many Canadians still purchase illegal weed.

However, in many cases, consumers might not know they’re buying from illegal sources. According to HEXO, many illicit products have the same packaging as legal products. Further, many illicit sellers use home delivery services and websites that look legitimate.

Recent surveys found that roughly 20 percent of people who purchase weed from an illegal website had no idea it was not a legal source.

Similar trends exist for edibles and topicals. In fact, a full third of Canadians who bought illegal edibles or topics were unaware they were purchasing from illicit sources.

“Illegal cannabis websites are well built, allow consumers to purchase online, and products are delivered to their doors,” St-Louis said. “But we know that illegal cannabis products can—and often—contain heavy metals, pesticides, and other contaminants, and that concerns me deeply.”

For now, HEXO’s Original Stash will launch in Quebec first. The company said the product is set to roll out across Canada at some point in the future.

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