Mr. Julius Kalcevich reports
IANTHUS HIGHLIGHTS CULTIVATION EXPANSION AND DISPENSARY PLANS IN OPERATIONAL UPDATE FOR GROWHEALTHY
iAnthus Capital Holdings Inc. has provided the following summary of updates to inform shareholders and stakeholders of developments and achievements at GrowHealthy, the company's Florida medical marijuana operation that was acquired earlier this year.
"As we prepare to open the first of our Florida dispensaries, we have made significant investments to upgrade our Lake Wales cultivation facility to quickly scale production and meet the expected demand," said Carlos Perea, chief operating officer at iAnthus. "This expansion puts GrowHealthy in an excellent position to capitalize on the explosive growth in the Florida medical marijuana market and become one of the state's pre-eminent providers of medicinal cannabis products."
Since the implementation of a medical cannabis program in June, 2017, the Florida market continues to show strong growth. As of July 20, 2018, the program has registered 138,558 patients and 1,572 qualified physicians, representing about 727-per-cent and about 92-per-cent growth, respectively. The program is adding approximately 10,000 patients and 60 physicians per month.
Florida is now the fourth largest medical market in the United States in terms of patients, surpassed only by California, Michigan and Arizona. The respective medical programs in California, Michigan and Arizona were implemented in 1996, 2008 and 2010, whereas Florida's program began in 2017.
Seven leases have been signed to date, with 12 leases currently in the pipeline. The company is targeting 15 signed leases by the end of 2018.
Signed leases include those in the table.
City County Size City population County population
Miami Miami-Dade 1,356 SF 453,579 2,693,000
Deerfield Beach Broward 5,562 SF 79,764 1,896,000
West Palm Beach Palm Beach 4,500 SF 108,161 1,423,000
Brandon Hillsborough 3,800 SF 105,000 1,349,000
Tampa Hillsborough 2,123 SF 377,165 1,349,000
Orlando Orange 1,900 SF 277,173 1,288,000
Sarasota Sarasota 2,350 SF 56,610 405,549
A prototype dispensary store has been finalized in terms of architectural design and engineering, and is ready for rapid rollout across the state.
Three dispensaries are scheduled to open in Q4 2018, with continued openings projected at approximately two dispensaries per quarter in 2019.
Lake Wales expansion
Construction of phase 1 facility expansion continues to progress and is slated to be completed by end of Q1 2019.
Following phase 1 construction, cumulative value of inventory produced per year is expected to reach $48-million (U.S.). The phase 1 buildout is expected to cost $8.1-million (U.S.).
Increasing bench space for flower plants to 11,689 square feet;
Making electrical and dehumidification upgrades;
Adding state-of-the-art chiller system specifically engineered for this facility;
15,000 SF extraction lab with commercial kitchen for edibles;
Office space, call centre and dispensary training area;
Updated facility will include a customer service call centre, and a 500 SF mock dispensary;
Mock dispensary will be utilized to train retail staff on point-of-sale systems, product offerings, and effective patient communication;
Purchased new fractional distillation system and rotary vaporizer.
Expanded delivery capabilities by purchasing three additional vans, bringing the current fleet to five total vehicles;
New vehicles have been outfitted in compliance with state regulations and will begin delivering throughout the state in September;
Generated $122,267 (U.S.) sales to date during pilot delivery program which has provided valuable market and patient insights.
GrowHealthy has hired three additional growers and two harvesters for its cultivation facility.
Hired three patient care representatives to better educate patients on products and consumption methods; GrowHealthy's goal is to have six patient care representatives by September;
GrowHealthy has recently on-boarded key team members with significant cannabis, medical and patient experience. Key hires include: Frank Quattrone (vice-president of operations), Ethan Borg (vice-president of extraction and product development), Don Moxley (director of applied science and brand development) and Emily Dickens (director of marketing and partnerships).
About iAnthus Capital Holdings Inc.
iAnthus Capital Holdings owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and health care services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. The company uses these skills to support operations across six states.
GrowHealthy and its affiliates were formed in 2014 to apply for a licence as a dispensing organization under the original Florida low-THC (tetrahydrocannabinol) medical cannabis program through its affiliated partner, McCrory's Sunny Hill Nursery LLC. McCrory's was licensed as a dispensing organization by the Florida Department of Health on Dec. 21, 2016, and then subsequently licensed on July 5, 2017, to cultivate, process, transport and dispense full-strength medical cannabis as a medical marijuana treatment centre under the new Medical Use of Marijuana Act passed in June, 2017.
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