With the clock ticking down under 100 days until recreational marijuana is legal across Canada, supply chains are quickly being assembled to meet what is expected to be robust demand.
After Wednesday's closing bell, Invictus MD Strategies Corp. (TSX-V:GENE)(OTCPK:IVITF) said that it inked an agreement with the British Columbia Liquor Distribution Branch to supply the province with some of its premium pot products for sale into the recreational marketplace. The cannabis goods will come from Invictus' subsidiary, Alberta-based Acreage Pharms.
On June 20, the Canadian government passed the Cannabis Act, which ends marijuana prohibition as of October 17, 2018.
The agreement with the B.C. Liquor Distribution Branch, officially a Memorandum of Understanding, marks the first agreement for Invictus to supply marijuana to a province.
The company has diverse operations, including its Acreage Pharms unit and two licensed cannabis production facilities expected to total more than 860,000 square feet of grow space once construction is done in 2019.
Invictus also owns Poda Technologies, the developer of the world's only zero-cleaning vaporizer system and a controlling stake in fertilizer and nutrients maker Future Harvest Development.
"Beyond supply agreements, Invictus is working to develop and implement a strategic patient acquisition program aimed at winning market share for medical cannabis sales, in addition to its ambitious retail plan that involves establishing dispensaries across Western Canada," the company said in a press release disclosing the deal with the liquor agency.
Shares of GENE gained six cents, or 4.4 percent, in Wednesday trading to close the day at $1.42. After a strong start to 2018, shares have lost momentum and are currently down by 10.7% so far on the year after ending 2017 at $1.59.
