Cannabis company Invictus MD Strategies (CVE:GENE, OTCQX: IVITF) told investors it had exercised its option to buy Canandia, which represents the firm's third cultivation facility licensed by Health Canada, sending shares higher.
Canandia has two properties in Delta and Mission in British Columbia.
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The Delta facility includes a cultivation, production and research facility, which was recently licensed under Canadian cannabis regulations.
The Mission asset includes 32 acres of buildable land, expandable up to 1 million sq ft of production capacity under one license.
The Mission facility benefits from wholesale energy costs with 38 MW service and access to an ample water supply from underground aquifers, making it a strategically attractive and cost competitive addition to Invictus' current cultivation footprint.
"We are continuing to expand our cultivation footprint to strengthen our ability to control a steady supply of cannabis to medical and recreational markets, both at home and abroad," said George Kveton, the chief executive of Invictus.
"Each of our three purpose-built licensed facilities are designed with separate environmentally-controlled grow rooms to allow for maximum flexibility as we adapt our strains and product offerings to meet the needs of recreational consumers and medical patients alike, over the long-term."
Invictus wants to scale production to address demand with up to 200,000 sq ft of cultivation capacity expected to come online in the first quarter of 2019.
The exercise price of the option includes a $10 million investment in cash into Canandia and $19.4 million in shares.
Invictus MD shares added 4.65% to $1.35 in Toronto.
Contact Giles Gwinnett at giles@proactiveinvestors.com
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