In its quest to meet a cannabis production target this year, Invictus MD Strategies Corp. (TSX-V:IMH)(OTCPK:IVITF) said on Wednesday that its subsidiary Acreage Pharms Ltd. has acquired 23 new cannabis strains, better positioning the Vancouver-based company to capitalize on the Canadian government's plans to make recreational marijuana legal nationwide later this year.
Shepherded ahead by campaign promises from Prime Minister Justin Trudeau, expectations were for full legalization in July, but regulators recently said that some hang-ups will likely push it back to at least some time in August.
Invictus operates through two primary verticals in the legal pot space, primarily as Licensed Producers and sellers under the Access to Cannabis for Medical Purposes Regulations, or ACMPR as it is typically shortened, through its 100% ownership of West-Central Alberta-based Acreage Pharms and 50% stake in AB Laboratories, headquarter outside Hamilton, Ontario.
Another cultivators license is expected for AB Ventures, a company jointly owned by AB Labs and Invictus. When running at full steam with all its units, which is on track to happen in 2019, management expects an annual run capacity of 76,400 kilograms of marijuana.
With the second stage of expansion going smoothly, the plan is to add 11 new flowering rooms in the near term, which will now be used for production of the new strains. Between the three phases of expansion this year, Invictus forecasts 1200,000 square feet of growing space producing 19,000 kilograms of cannabis in 2018.
The new strains are arriving at Acreage Pharms facilities in about a week and a half, at which time their scientists will start creating and selecting specific genomes for production, some for medical use and others for recreational.
Toronto-listed shares of Invictus are edging ahead in today's trading on the news, gaining 2.7%, or five cents per share, to $1.93 with about 90 minutes left in the trading day. U.S.-listed shares are ahead 2.6% at $1.52.
