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But the company is also keen to seize market share from rivals. There are 27 licensed medical marijuana producers in Canada, and it will be difficult for many of them to make money if they sell at five dollars a gram. Most of these firms have much less scale than Bedrocan, and some have suffered crop failures that drive up costs.

Bedrocan has avoided crop problems, in part because of its history. The company started out as a subsidiary of a Dutch producer that has more than a decade of growing experience. Over time, the Dutch firm developed a highly efficient process that was replicated by Bedrocan Canada.

“One thing that astounds me is how right everything goes every time,” Bedrocan spokesman Cam Battley said. “It works every week and there’s a harvest every Monday.”

Rival companies have cut prices to on some products to five dollars a gram or lower, but no one did it for a full line of products until now. Wayne said most of the products currently priced in that range by other companies are of low quality.

Aaron Salz, an analyst at Dundee Capital Markets, said that when one of Canopy’s peers cut prices, it got a “material uptick” in demand. That suggests patients are “price elastic,” he said in a note.

Salz also noted that this move could build goodwill with customers. At a price of $7.50 a gram, he said patients are spending a whopping $1,400 to $2,800 a year on medical marijuana at average consumption levels.

“The (price-cutting) tactic is both strategic in attracting patients with competitive pricing and ethical in that it sends a message to regulators to act on insurance coverage and other affordability measures,” he said.

pkoven@nationalpost.com

Twitter.com/peterkoven