Terry Donnelly: There’s probably 20 companies out there that have some kind of infusion technology, varying approaches and strategies. We’re one of a number of licensees of a Lexaria technology and we just sort of consider that table space to be in the beverage business.
So it’s not a major differentiator and it’s right now alcohol isn’t a differentiator in beverages. Everybody makes an alcoholic beverage has an alcoholic beverage. So it’s really taste, so we’ll be positioning our products on the taste.
Capital 10x: Anyone who’s tried to follow along with regulations with the government probably just gets a headache or just gets very frustrated. Looking like October regulations will be released when do you expect to be able to start selling these cannabis-infused beverages?
Terry Donnelly: We’re probably projecting that the beverages will appear in the marketplace in Q1 of 2020. You know if you were fully ready to go on October 17, if you had some kind of insight as to what the regulations were gonna be. If you were able to be a 100% compliant with things that hadn’t been published yet but a miracle of whatever it was but if you’re ready on October 17th you’ve got to give Health Canada 60 days notice of a new product and then they’ve got to approve it. So probably q1 of 2020.
Capital 10x: So when the products hit the shelves and I mean I’m sure there’s gonna be a lot of interest even if it’s just initially but from consumers for these new types of products what do you expect I guess the return in terms of the sales of your beverages you know they did increase in the revenues that Hill Street sees?
Terry Donnelly: Well I look at it more from a capacity standpoint. The production lines that we’ve purchased — we have both a bottling line in a canning line that will be dedicated to cannabis-infused beverages — those lines combined can generate about $30 million of annual wholesale revenue at a very consumer friendly price point per shift so on an annualized basis if we were running two shifts we could generate 60