iAnthus Highlights Cultivation Expansion and Dispensary Plans in Operational Update for GrowHealthy
NEW YORK and TORONTO, Aug. 15, 2018 /PRNewswire/ – iAnthus Capital Holdings, Inc. (“iAnthus” or “the Company”), (CSE: IAN, OTCQB: ITHUF), which owns, operates and partners with licensed cannabis operations throughout the United States, is pleased to provide 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. 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 preeminent providers of medicinal cannabis products.
Carlos Perea, Chief Operating Officer at iAnthus
Market Highlights:
- 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 ~727% and ~92% 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 U.S. 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.
Dispensary Momentum:
- 7 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:
- A prototype dispensary store has been finalized in terms of architectural design and engineering, and is ready for rapid roll-out across the state;
- 3 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 US$48 million. The phase 1 buildout is expected to cost US$8.1 million;
- Facility expansion:
- Increasing bench space for flower plants to 11,689 sq. ft;
- 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 center, and dispensary training area;
- Updated facility will include a customer service call center, and a 500 sq. ft. 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.
Delivery Program:
- Expanded delivery capabilities by purchasing 3 additional vans, bringing the current fleet to 5 total vehicles;
- New vehicles have been outfitted in compliance with state regulations and will begin delivering throughout the state in September;
- Generated US$122,267 sales to-date during pilot delivery program which has provided valuable market and patient insights.
Human Capital:
- GrowHealthy has hired 3 additional growers and 2 harvesters for its cultivation facility;
- Hired 3 patient care representatives to better educate patients on products and consumption methods; GrowHealthy’s goal is to have 6 patient care representatives by September;
- GrowHealthy has recently onboarded key team members with significant cannabis, medical and patient experience. Key hires include: Frank Quattrone (VP of Operations), Ethan Borg (VP of Extraction and Product Development), Don Moxley (Director of Applied Science and Brand Development), Emily Dickens (Director of Marketing and Partnerships).
About iAnthus Capital Holdings, Inc.
iAnthus Capital Holdings, Inc. 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 healthcare 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. For more information, visit www.iAnthusCapital.com.
About GrowHealthy
GrowHealthy and its affiliates were formed in 2014 to apply for a license as a Dispensing Organization under the original Florida low-THC medical cannabis program through its affiliated partner, McCrory’s Sunny Hill Nursery, LLC (“McCrory’s”). McCrory’s was licensed as a Dispensing Organization by the Florida Department of Health on December 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 Center under the new Medical Use of Marijuana Act passed in June 2017.
GrowHealthy owns a cultivation and processing facility comprising almost 200,000 square-feet on 33 acres in Lake Wales, Florida, which at the time of licensure was the largest cultivation facility in the state and is currently negotiating lease agreements for its initial proposed dispensaries throughout Florida.
