Back in early November, we wrote an article on Invictus MD (TSX-V: IMH) when the stock price was $1.20. During that week, trading volume increased substantially, exceeding its three-month average volume by 300%.
Investors are beginning to clue in on the value that Invictus offers, and deciding to invest before the looming sales and production approval in 2018.
In just one month, since the last article was written, the company’s average weekly trading volume doubled from November, and stock price increased 33% from $1.20 to $1.60 per share.
Cannabis Marketplace Expanding
Invictus recently published an article outlining the recent growth that the U.S. cannabis marketplace is experiencing and noting that the entire market is expanding as new categories are beginning to emerge. 2 days following this article, trading volume reached an all-time high, exceeding 1.5 million in a single day.
According to the article, as markets mature in the United States, subcategories like cannabis pills have been emerging and rising swiftly. According to BDS Analytics, sales of cannabis pills increased 80% in the U.S last year, and 166% in Colorado alone, the leading marketplace in the U.S.
CEO of Invictus, Dan Kriznic, believes the driver of this market are not the usual users of cannabis, but rather the newbies who are unfamiliar with cannabis and who will likely see pills as an easy stepping stone towards cannabis usage.
Their phase 2 expansion (+32,000 sq ft) is scheduled to be completed in January 2018 allowing for 5000 kg of annual production
Acreage Pharms and AB Labs facility are currently both at full production with a total combined capacity of approximately 1,500 kg annually. As the facilities expand, the company expects total production capacity to increase 5x to 7,850 kg annually by 2018.
Acreage Pharms recently completed its 6th harvest, and the yield increased by 30% over the prior harvest from the same room as a result of improved plant spacing and activation of the nutrient delivery system. The facility continues to grow completely pesticide free and is outperforming management’s expectations for overall production values.
Update on Sales Approval
Both Acreage Pharms and AB Labs have submitted formal requests to Health Canada to allow for the sale and distribution of medical cannabis. As of December, the Company is confident that both facilities are compliant with all necessary requirements, that they will pass the required inspection, and that the Amendment will be issued in due course. This company update was one of the many reasons that led to a 33% spike in stock price for Invictus MD.
Invictus is currently and confidently awaiting permitting approval for two of its production expansions. Any update on the approval process should provide more upward momentum for its share price in the near term.
Once the entire sales approval process is completed and production is underway, the stock price has the potential to increase drastically and likely stay at those new levels following legalization of recreational cannabis use.
Fortune Favours the Bold