Invictus MD Completes First Harvest & Breaks Ground In Expansion -- CFN Media
Published: Jul 19, 2017
SEATTLE, WA--(Marketwired - Jul 19, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and digital media network dedicated to legal cannabis, announces the publication of an article examining Invictus MD Strategies Corp.'s (TSX VENTURE: IMH) (
Initial AB Labs Harvest
Invictus MD Strategies' 33% owned AB Labs is a 16,000-square foot purpose built concrete and steel facility in Hamilton, Ontario with 1,000 kilograms of annual production capacity. In addition to this approved capacity, the company is actively seeking adjoining properties for direct expansion into the existing facility. The facility is initially focused on strains that have varying levels of tetrahydrocannabinol (THC) and cannabidiol (CBD).
On July 13, the company announced that AB Labs completed its first harvest four weeks ago and anticipates a monthly harvest moving forward. These activities should begin generating significant revenue for the company moving into the second half of the year, which will scale up as the company increases production capacity over time. Management anticipates about 250 kilograms of production in 2017 before scaling up to 1,000 kilograms in future years.
Invictus MD Strategies has been making tremendous progress in advancing its other cannabis production facilities across Canada. With a $30 million capital outlay, the company plans to build out 147,550 square feet of production that's capable of generating 16,850 kilograms per year of cannabis. The company's share of the production from non-wholly-owned subsidiaries will be approximately 14,513 kilograms per year.
AB Ventures -- a subsidiary formed to develop a second licensed expansion facility in Hamilton, Ontario -- is forging ahead with planning its Phase I expansion. The initial fully-funded $5.5 million expansion will be a 21,000-square foot purpose built facility capable of producing 3,000 kilograms per year. Management plans on completing this initial phase by the end of the year with plans to build an additional 21,000 square foot building envelope.
Acreage Pharms received a development permit for Phase II and has broken ground for the 27,800-square foot purpose built, multiple room production facility. The contracts and supplies necessary to complete the project have been scheduled and the company is prepared to invest $6 million toward the cost of constructing the production facility. The Phase III expansion will be a 76,750-square foot facility capable of producing 9,210 kilograms per year.
Invictus MD Strategies differs from conventional licensed producers with its diversification into related equipment and nutrient businesses.
Future Harvest is an 82.5% owned manufacturer and distributor of hydroponic and indoor growing equipment. With over 20 years of history in the industry, the company provides more than 40 proprietary products that account for about 95% of what it sells. Management anticipates revenue to grow from C$2.5 million in 2017 to more than C$5 million by 2019 with C$750,000 in EBITDA, which will contribute meaningfully to its bottom line.
In the past, the company has generated significant returns from acquiring and selling these kinds of ancillary businesses. For example, the company acquired a 100% stake in Cannabis Health for $45,000 that it sold for $275,000 in just 10 months. Management also sold off the Sunblaster assets from Future Harvest for $3.75 million after acquiring a 75% stake in the company for just $900,000 just under a year ago.
Please follow the link to read the full article: http://www.cannabisfn.com/invictus-md-completes-first-harvest-breaks-ground-expansion/
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