Articles > Invictus MD prepares for legalization with expected cannabis ready production of 6,000 kg
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Invictus MD Strategies Corp. (IMH>V) (IVITF) through its interests in two ACMP license holders, its wholly-owned subsidiary Acreage Pharms Ltd. and its one-third interest in AB Laboratories Inc., expects to have production capacity of 6,000 kg commencing January 2018, several months before Canada expects cannabis to become recreationally legal. Total current production capacity at both locations is approximately 1,500 kg.
License Capacity and Term
Health Canada has removed the previously disclosed production capacity restrictions at both Acreage Pharms and AB Labs. In addition, AB Labs received an extension of its existing ACMPR license for a period of two years and Acreage Pharms' ACMPR license was extended through to March 2020.
Update on Sales Approval
AB Labs has submitted a request to Health Canada to amend its license to allow for the sale and distribution of medical cannabis (the "Amendment"). Health Canada's approval of the Amendment is subject to, among other things, a regulatory inspection of AB Labs' production facility and cannot be guaranteed by the Company. However, management of the Company is confident that AB Labs is compliant with all necessary requirements, that AB Labs' facility will pass the required inspection and that Health Canada will approve the Amendment and grant AB Labs a sales license in due course.
Acreage Pharms has submitted additional samples to three independent labs licensed by Health Canada and management is confident Acreage Pharms will receive a sales license once the quality assurance team has analyzed the results. This will be a significant milestone for Acreage Pharms and the Company.
Update on Production
AB Labs plans to release over 6 Lots consisting in excess of 75 kg over the next one to three months. The facility is currently at full production and development plans have been submitted for an expansion at the AB Ventures Ltd. 100 acre site in Hamilton, Ontario. The current facility at AB Labs can produce 1,000 kg at full capacity.
Acreage Pharms' existing facility is also currently at full production and additionally has converted a vegetative room into a flowering room, thereby providing additional production capacity. Total capacity is expected to reach 5,000 kg by January 2018 when Acreage Pharms completes its current 32,000 square foot expansion. Acreage Pharms phase 2 expansion is currently underway with the completion of the concrete foundation and expectation the tilt up slab concrete walls will be installed by end of November.
Dan Kriznic, Chairman & CEO, of Invictus MD, commented "I am very pleased to report that our operational activities are unfolding according to our business plan, and that our strategic efforts to build Canada's Cannabis Company are coming together. The issuing of the sales and distribution Amendment to Acreage Pharms and AB Labs cultivation license under the ACMPR would constitute a significant value catalyst for our shareholders. I would further comment that the company's balance sheet remains very strong; it has minimal debt and the approximate $26 million cash in the treasury has been reserved to expand its canopy footprint on its 250 acres of property, making it one of the top producers under the ACMPR. This production is needed to meet the significant demand for high quality, standardized, pesticide free product not only for the existing medical market but also to accommodate the recreational market that will commence mid 2018."