INVICTUS MD STRATE COM NPV (OTCMKTS:IVITF) shares have been up over 20% in a one-month period recently, and it looks like it could continue higher. Invictus MD reported that one of its developments, in which it has a majority stake, has increased its gross margin significantly, but more on that later. Not only that, but it’s also announced that one of its potential subsidiaries has began cultivation with the commitment to produce high-quality cannabis. But let’s get into some company background first.
If you’ve never heard of Invictus MD Strategies Corp, the company is primarily focused on three main verticals within the burgeoning Canadian cannabis sector, which includes Licensed Producers under the ACMPR including an investment in a fully licensed facility AB Laboratories Inc; Fertilizer and Nutrients through Future Harvest Development Ltd; and Cannabis Data and Delivery, with its wholly owned subsidiary Poda Technologies Ltd. Additionally, Invictus MD has the option to now acquire 100% of Acreage Pharms Ltd.
Moving on, let’s take a look at some company news. INVICTUS MD STRATE COM NPV (OTCMKTS:IVITF) announced that Future Harvest Development, which Invictus MD currently owns a 82.5% stake in, generated over $1.7M in revenue for the nine months ended on March 31, 2017. Consequently, it had a gross margin of $907K, a 50.8% gross margin compared to the same period in the previous fiscal year, when the company reported a gross margin of $642K and a 35.9% magin.
Invictus MD Chairman and CEO Dan Kriznic stated, “Future Harvest’s success reinforces our focused execution on being a leader in the burgeoning global cannabis industry as Canada moves closer to legalized recreational marijuana. We remain confident in our ability to delivering strong results this year, and expand Future Harvest’s ability to further increase our shareholder value.”
According to Chris Pearson, Chief Revenue Officer of Future Harvest, “We supply specialty fertilizers and other supplies for hydroponics, the indoor method of growing crops favored by cannabis cultivators. We know there’s a massive market out there; we’re directly focused on what’s made our business successful: high-value crops.
Pearson continued, “To seize the growing demands in the cannabis sector, we’ve ramped up production by installing a second, fully automated bottling line increasing overall production efficiency by 400%, and a state-of-the-art pill press (patent pending), enabling us to produce water-soluble nutrient tablets, eliminating the need for water and salt and greatly reducing packaging and transportation costs for large-scale commercial applications. These initiatives further position us for the highly profitable business opportunities within the global cannabis sector.”
That in mind, Canada’s potential move to legalize recreational marijuana move could benefit Invictus MD, and the company could continue to grow its gross margin. Moreover, it’s increase in production efficiency could allow it to take some market share in the cannabis sector.
Now, Invictus also recently announced that Acreage Pharms, which Invictus MD has the option to acquire 100% of it. Invictus expects to exercise the option in “short order”. Acreage Pharms began its new cultivation cycle, after receiving its license to cultivate under the Access to Cannabis for Medical Purposes Regulations.
Future Harvest Chief Revenue Officer stated, “We’re committed to our customers’ quality outcomes. At Future Harvest we’re highly dedicated to consistently producing the highest quality nutrient formulations. This is achieved through our Standard Operating Procedures including closely monitoring and having regular detailed dialogues with our global supply partners to ensure product consistency, a five times cleaning protocol for all batch and formulation tanks, and an independent detailed analysis sample procedure.”
With these catalysts, Invictus MD could continue its rise. Now, with Canada potentially legalizing recreational cannabis for adult use, this could potentially drive IVITF’s revenues and margins higher, which should translate to a rise in its stock price. Now, if you missed these catalysts, you might not want to miss any future developments in IVITF. If you’re looking to stay up to date on IVITF, it’s pretty easy. All you have to do is enter your email address below, and we’ll send you updates, if any, on IVITF.
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in IVITF stock, short or long.