Liberty Health Sciences (LHSIF) has doubled its cultivation space in Florida with production commencing at its Liberty Health Sciences 360 Innovation Campus in Gainesville in response to the growing demand by Florida patients.
The expansion will increase Liberty's production capacity in the state by an additional 20,000 sq. feet, bringing the total capacity to 41,200 sq. feet. This initial phase of the 360 Campus will be used for the cultivation of premium grade cannabis along with R&D for future genetic study programs.
The next phase
The next phase of the previously announced retrofit program is scheduled to be completed in November and will add an additional 80,000 sq. feet, which will result in Liberty having the largest production capacity of any medical marijuana producer in Florida. Once the retrofit is fully completed and online in early 2019, the Company's production capacity will increase to approximately 225,000 sq. feet.
The new cultivation space is fully operational and environmentally controlled with sophisticated irrigation systems, grow lighting, air filtration exchange, CO2 dosing, and heating and cooling to ensure maximum production of the marijuana plant.
To expedite the expansion of Liberty's reach and ensure statewide coverage of its valued customers the company has also expanded its one-day delivery hub services. All deliveries will now have a turnaround of 24-hours or less throughout Florida. the company has implemented cutting-edge software to optimise delivery routes, reduce wait time and enhance customer experience.
In accordance with the Company's rapidly expanding presence in Florida, production of Liberty's newest and highly anticipated offering to consumers, Mary's Medicinals, has commenced production. The entire award-winning line of innovative Mary's products will soon be available in all of Liberty's Cannabis Education Centers (CEC).
No stock has been under more pressure in 2018 than Liberty Health Sciences, and in our opinion, unfairly so. Some of the reasons for this have been the relatively extreme company valuation, the divesting of Aphria from the partnership (and subsequent sale of their shares) and the fact that Liberty only operates in Florida – making them a one trick pony.
First off, the Aphria move was not as a result if a lack of confidence in Liberty, it was purely to protect Aphria'a Canadian listing (they could have been delisted if they had maintained their investment in a company operating in a federally-illegal environment) and the shares have been sold to the Sureya Family (very sophisticated investors that have experience in investing in the Cannabis Industry.
Secondly, Liberty has now taken a majority stake in a Massachusetts producer and will be a player in this booming market, and thirdly considering just how lucrative the Florida market is (and is going to be) and given the fact they are the largest player in this market, coupled with their current (very fair) valuation, makes them a very good investment bet right now. We are still bullish on Liberty Health Sciences and continue to dollar average down as we add to the portfolio.