To all new IMH shareholders - READ HERE FOR UPDATED TIMELINE I think warrant holders are selling shares currently to then exercise their warrants at 1.75 and 2.35, and can increase invictus md's capacity to 67,000 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. I posted this 2 weeks ago, and I was right about warrants being exercised. They now have an additional $9 - 10 million in the bank for expansion as of Jan 15, 2018.
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 & Acreage Pharms. Announce revenue from wholesale agreement with Canopy Growth Corporation (TSX : WEED). (WE ARE HERE AND ON TRACK FOR END OF JANUARY. AB Labs sales license is now secured, Revenue secured from canopy growth at AB labs, and we are waiting on acreage pharms sales license and a finished facility to give us 25 million in revenues yearly.)
2018 February - 2018 March: Almost 100% positive we receive acreage pharm sales license by this time [ BIGGEST CATALYST ]. Receive production license / buildout for AB Ventures.
2018 April to 2018 June : Finish capacity expansion for AB Labs, receive AB Ventures production license. This will secure an additional ~ 2000 kg in production capacity.
2018 July - 2018 September (RECREATIONAL WEED IS LEGALIZED) - Invictus MD will have 3000+ kg ready to sell in the rec market (15 mil in revenues immediately). Expansion of Acreage Pharms will be finished as well. 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. I strongly believe an acquisition will come after completion of Acreage Pharms expansions. All these pump and dump jobs with higher valuations than IMH don't even come close.
Here's the big kicker: Aurora Cannabis (TSX : ACB) will have ~150,000 kg built out for recreational market...and is worth ~5-6+ 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 $4 (fully diluted), based on a conservative net income of $1.125 per gram after taxes and a P/E of 20. If all expansions come to fruition we can be looking at $12.
I am very excited for IMH's future. GLTA. IMH long and strong!
Disclosure : I hold IMH shares and no ACB or WEED shares.
This post will be updated, revised and reposted after any notable catalysts are announced. Last updated January 26, 2018.