Invictus MD Provides Major Update On Acreage Pharms

INVICTUS MD STRATEGIES CORP. (TSXV: IMH) (OTC: IVITF) announced that construction of the Phase 2 development, a purpose built, multiple room production facility, is well underway at its wholly owned subsidiary, Acreage Pharms Ltd. , a licensed producer under the Access to Cannabis for Medical Purposes Regulations.

The foundation for the Phase 2 facility has been poured and the exterior is expected to be completed by the first part of November 2017. By the end of January 2018, the interior fit-out is expected.

While the facility was originally planned for 27,800 square feet, utilizing best practices learned from previous developments, the design was optimized to increase it to 32,000 square feet. The additional space will provide added capacity to accommodate administrative and production staff. The new facility will house nine, 1,600 square foot flowering rooms, maximizing available floor space and allowing for a fully controlled and optimized environment facilitating a harvest every two weeks and enabling the grow teams to complete all their procedures in the same day. Additionally, a second level 8 vault will be constructed giving Acreage Pharms the ability to store some $60 million of cannabis product at a given time.

Commencing February 2018 Acreage Pharms will have a production run rate of approximately 5,000 kgs of cannabis per annum based on the improvements realized from Phase 1 plus the construction of the Phase 2 facility. Given the location of Acreage Pharms in West-Central Alberta, electricity for the facility is being achieved at 2.8 cents per kW, which is one of the lowest rates in Canada. Additionally, there are no fees related to the disposal of water at the facility given it will be processed utilizing a septic tank and drain field method. These factors among others will allow Acreage Pharms to be very competitive while producing high-quality cannabis at one of the lowest cost per gram in the industry.

The capital costs of constructing the Phase 2 facility continue to remain within the $6 million that was initially budgeted.

Initial harvests in the existing state-of-the-art production facility, using pesticide free growing systems and Good Production Practices, has resulted in high quality, non-irradiated medical cannabis. Currently Acreage Pharms has 80,000 grams of dried cannabis in its vault, ready for sale once it receives its sales license.

“Invictus MD currently has $27 million in cash in the treasury. This cash has been earmarked for expanding square footage to meet the significant demand that is not only currently existing as part of the medical market but also to accommodate the recreational market that will commence mid next year. Invictus MD has enough cash in the treasury to expand its canopy footprint on its 250 acres of property and produce 15,000 kg’s per annum making it one of the top producers under the ACMPR.” said Dan Kriznic, Chairman & CEO, of Invictus MD. “The construction plans at Acreage Pharms has been our corporate strategy to take advantage of the current and future demand for a high quality standardized pesticide free product, in this emerging market.”