Invictus MD Strategies (IMH.C) celebrated today when the company announced yesterday that its wholly-owned subsidiary, AB Laboratories had grown several test crops under the Access to Marijuana Production Regulations (ACMPR).
According to the news release, the licensed facility, licensed under the ACMPR since October 2016 and located in Hamilton, Ontario, currently operates at half capacity and is expected to come fully on line by the end of May 2017.
AB Ventures’ previously announced acquisition of 100 acres is expected to close on May 1, 2017. The additional property will be used for future cannabis cultivation once licensed under the ACMPR.
Plans for the expansion which will include five production facilities totaling 100,000 square feet are expected to be finished by 2019.
Invictus MD is obligated to invest $5.5 million which will fund licensing approval under the ACMPR and the construction of the initial 42,000 square foot facility.
This commitment is in addition to the $2.0 million already funded for land acquisition plus working capital and will provide Invictus with a 33.33% interest in AB Ventures.
AB Ventures will be using the same persons in charge as AB Labs, because they have already been licensed by Health Canada. This will reduce the time usually attributed to receiving a secondary license.
AB Ventures expects to commence licensed production as early as December 2017.
Company Chairman and CEO, Dan Kriznic, commented, “We are very pleased to see the speed at which AB Labs has been able to secure starter material, strains and potential offtake partners for production. In addition, considering the magnitude of AB Ventures’ land acquisition and future facility, and assuming AB Ventures obtains a license to produce the quantity forecasted for the proposed facility, the combined production capacity of both AB Labs and AB Ventures is expected to exceed 20,000 kilograms in 2019. Invictus MD currently has approximately $15.5 million in cash and is fully funded for the initial expansion plans with AB Ventures. Construction plans are already underway and expect to be submitted to Health Canada by May 1, 2017.”
FULL DISCLOSURE: Invictus MD Strategies is an EQUITY.GURU client.