Amid yet another horrific trading day for the broad markets, Invictus MD Strategies Corp. (TSX-V:IMH)(OTCPK:IVITF) is a standout, gaining ground on news of a cash infusion and increasing cannabis production capacity going forward. The Vancouver-based company said since December 22 it pulled in $16.54 million from the exercise of warrants and options, boosting its cash on hand to about $38 million.
The exercise of 9.66 million warrants and options brings Invictus MD's issued and outstanding share count to 89.86 million. There are still 14.69 million more warrants outstanding, along with 8.52 million options. If all are exercised, the haul would be about $39 million more.
Invictus MD is using its cash to invest heavily in expanding production facilities for the cannabis license holders in its portfolio. The company owns 100% of Acreage Pharms in western Alberta, Canada and 50% of Ontario-based AB Laboratories, as well as a JV with AB Labs called AB Ventures. AB Labs already has licenses to cultivate and sell cannabis in Canada and made its first ever sale of 120 kilograms late in January.
The other companies are working towards getting licensed from Health Canada, including Acreage Pharms anticipating a sales license this quarter, which will allow it to sell the stockpile of marijuana it has in its vault.
Funded capacity for all Invictus MD's companies is currently about 27,200 kilograms, with plans to expand facilities to raise capacity in 2019 to 76,400, with a net to Invictus MD of 67,000 kilograms. When the intended construction is completed, the facilities will cover over half a million square feet.
Investors don't seem to mind a few more shares entering the market, with over 2.1 million shares already traded with about 2-1/2 hours remaining in the trading session. Shares are up 6.6% at $1.77.