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by Stockwatch Business Reporter

The TSX Venture Exchange declined 4.75 points to 720.27 Tuesday. Rocky Bellotti's first capital pool shell, the halted BFK Capital Corp. (BFK), has already found its first qualifying transaction, just two weeks after listing. It will acquire The Hydropothecary Corp., a medical marijuana company.

BFK will roll back its shares 1:2.8, leaving it with 952,356 postconsolidated shares outstanding, and then acquire Hydropothecary for 9,307,430 postconsolidated shares, after which the shell will change its name to that of the target. Late last month, Hydropothecary received a production licence from Health Canada under the MMPR policy to operate a grow-op facility in Gatineau, Que., bringing the total number of production licences issued by the government to 22. Hydropothecary will not be competing with other medical marijuana producers on price, but rather on service, which explains why the company refers to itself as a luxury medical marijuana company. It has claimed to never focus on cost, but rather on its facility and quality, including strain-specific lighting, strain-specific food, 21-point room monitoring and control, a "signature" cultivation process, and storing the final product in glass (never plastic). It also plans to offer 24-hour "concierge service," which means customers can call the company with questions, complaints or compliments any time. For this luxury product and service, Hydropothecary charges a premium. It will soon begin selling four different strains -- named Good Morning, Midday, After Dinner and Bedtime -- at prices ranging from $26 to $32 a gram. That is much pricier than the prices charged by other medical marijuana producers such as Marc Wayne's Bedrocan Cannabis Inc. (BED: $0.80), which has fewer bells and whistles but charges a more reasonable $7.50 a gram. For customers more concerned with the comfort of the pot plants than the effect of the pot, this fancy production formula may be just the ticket. For other customers who just want pot that relieves their pain delivered by a speedy courier the Hydropothecary premium will be less appealing.

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