IVITF NEWS!! perfect Time to buy. Invictus MD’s AB Laboratories Inc. Provides Cultivation Update under ACMPR
INVICTUS MD STRATEGIES CORP. announces that AB Laboratories Inc. (“AB Labs”) has successfully completed several test crops in its licensed production facility under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) located in Hamilton, Ontario.
The facility, which was licensed for Cultivation under the ACMPR in October 2016, is currently operating at half capacity, with full production capacity scheduled by the end of May 2017. AB Labs has already received several direct inquiries from patients, which underscores the continuously growing demand.
The 100 acres that AB Ventures Inc. (“AB Ventures”) acquired, which is scheduled to close on May 1, 2017, will be used for future cannabis cultivation once licensed under the ACMPR. Plans to construct five production facilities on the new land totaling 100,000 square feet are anticipated to be completed by 2019. Invictus MD has made a commitment to invest $5.5 million, which will be used to fund the costs of licensing approval under the ACMPR, and constructing the initial 42,000 square foot cultivation facilities. The commitment is in addition to the $2 million already funded for the land acquisition plus working capital and will provide Invictus MD with a 33.33% interest in AB Ventures. In preparation for a fully compliant application, AB Ventures will be using AB Labs respective persons in charge that have already been cleared by Health Canada. This will reduce the amount of time to get a secondary license, as security clearance is a lengthy process under the ACMPR approval process. With licensing in place as expected, production at AB Ventures is anticipated to start as early as December 2017.
Dan Kriznic, Chairman and CEO of Invictus MD, stated “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.”
