Invictus MD Strategies Corp (OTCMKTS:IVITF) has shown some signs of long-term sustainability in the last few months. IVITF continues to gather land and cultivation space across Canada to meet the supply-demand oncoming from country-wide legalization, which will send recreational users in droves to cannabis sellers. Just Tuesday, IVITF announced it had increased its ownership of AB labs from 33% to 50%. Furthermore, IVITF made a milestone announcement recently with the sale of its first 120 kg of dried flower to Canopy Growth Corp from AB Labs. The company said AB Labs’ products will be used in Canopy Growth’s curated CraftGrow line on Tweed Main Street’s online store.
Dan Kriznic, Chairman and CEO of IVITF commented, “We continue to focus on utilizing our $38 million of cash in treasury to build out additional square footage to meet the expected demand once Canada becomes recreationally legal, which is anticipated this year. With our current funded capacity of approximately 27,200 kg and our additional planned expansion to get our license holders to approximately 76,400 kg in 2019 with a net to Invictus of 67,000 kg it would bring us in line with some of our peers that are leading the industry. The Sales license for AB Labs has been a catalyst to getting to this stage and the next catalyst will be our sales license for Acreage Pharms that is expected to occur in this first quarter of 2018.”
Invictus MD Strategies Corp (OTCMKTS:IVITF) promulgates itself ostensibly as a company that targets small and mid-size companies with “proven brands, strong customer focus, and significant growth potential. We direct the strategy towards profitability and growth for each of our portfolio companies.”
According to company materials tagged to recent press releases, “Invictus MD Strategies Corp. is focused on three main verticals within the burgeoning Canadian cannabis sector: Licensed Producers under the ACMPR including an investment in a fully licensed facility, AB Laboratories Inc. as well as the option to now acquire 100% of Acreage Pharms Ltd.; Fertilizer and Nutrients through Future Harvest Development Ltd.; and Cannabis Data and Delivery, with its wholly owned subsidiary Poda Technologies Ltd.”
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According to the release, IVITF’s license holders’ total annual kilogram capacity after various phases of expansion in 2018 and 2019, complete and in progress, is expected to be approximately 76,400 kg, based on expanding facilities in 2019 to approximately 520,000 square feet. The expected net production capacity to Invictus is approximately 67,000 kg after this recent development at AB Labs.
Kriznic added, “This is another significant milestone for Invictus. When we started this company in 2014 it was with the intention of becoming Canada’s Cannabis Company. AB Labs produces high quality strains, which will meet the increasing demand in the Canadian marketplace. Additionally, we expect to receive a sales license for Acreage Pharms Ltd. within the first quarter of 2018.”
In addition, IVITF’s 100% owned subsidiary Acreage Pharms is expected to receive its sales license by the end of March. Located in West-Central Alberta, Acreage Pharms has already harvested multiple crops successfully and its product has previously been tested.
Currently trading at a market capitalization of $123.39M, IVITF is hauling in trailing 12-month revenues of $1.8M. As cannabis sales ramp up and more harvest hit their vaults, we expect IVITF to see greatly increased revenues, if all goes to plan. The company has not been fully licensed and that should be coming down the pipe in March. We will offer more updates as they become available. Sign-up for continuing coverage on shares of $IVITF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $IVITF, either long or short, and we have not been compensated for this article.