To all new IMH shareholders - READ HERE FOR UPDATED TIMELINE I think warrants at 1.75 and 2.35 will be exercised and sold currently, and can increase invictus md's capacity to 50,000 kg earlier (2019 to 2020)! Could give it a valuation of 12.00 (5x-6x the current price) conservatively based on quick math of $5.00/gram sales.. that is if they dont get acquired first. I'm holding my shares long and strong. We may hover around the price of 2.35 (Canaccord's new price target is 2.25), so this is a great time to accumulate.
Why am I long?
Timeline and catalysts for invictus:
2018 January : Finish building 5000 kg production capacity in acreage pharms, possibly receive sales licenses for both AB labs and Acreage pharms. Announce revenue from wholesale agreement with Canopy Growth Corporation (WEED). (WE ARE HERE AND ON TRACK FOR END OF JANUARY. AB Labs sales license is now secured, we are waiting on acreage pharms sales license and a finished facility to give us 25 million in revenues yearly.)
2018 February - 2018 March: Finish buildout of AB Ventures & receive a cultivation license. PODA subsidiary as spinoff? We may receive free shares in the spin-out company as IMH share-holders.
2018 April - 2018 September (RECREATIONAL WEED IS LEGALIZED) - Invictus MD will have 5000+ kg ready to sell in the rec market (15 mil in revenues immediately). Finish buildout of AB labs expansion (will be 50% owned). Finish expansion of Acreage Pharms. End result at September 2018 is 22,000 kg annual production capacity across all 3 of their licensed producers. In CY2019 they will be set to make 22,000 kg translating to 110 million in revenue. All these pump and dump jobs with higher valuation than IMH don't even come close.
Here's the big kicker: AURORA CANNABIS will have 120,000 kg built out for recreational market...and is worth ~5 billion....why is IMH only at 200 million market cap with 22,000 kg ready for recreational? My big theory is that fund holders are manipulating the price in order to make it more attractive for a buy out. This feels like a Mettrum situation with CGC back in the day, where the valuation just didn't make sense so it got acquired. Either way, it has a LOT to gain in share price from here. Minimum price target imo should be $5 without warrant money, based on a conservative net income of $1.125 per gram after taxes and a P/E of 20.
I am very excited for IMH's future. GLTA. IMH long and strong!
This post will be updated and reposted after any notable catalysts are announced. Last updated January 8 2018.