December 14, 2018

Liberty Health Sciences Inc (CNSX:LHS) Site Tour: Top to Bottom, Seed to Sale

Midas Letter
Midas Letter
Liberty Health Sciences Inc (CNSX:LHS) Site Tour: Top to Bottom, Seed to Sale

Liberty Health Sciences Inc (CNSX:LHS) (OTCMKTS:LHSIF) (FRA:S6UQ) CEO George Scorsis provides viewers with an inside look at the company’s Florida operations, from its greenhouses to its dispensaries. Viewers are shown the company’s Gainesville production facility, where Liberty Health Sciences produces Mary’s Medicinals and PAX products, as well as a variety of transdermals, ointments, and vaporization pens. Viewers get a chance to see the extraction process, which uses Supercritical CO2 Extraction to create the flavourful oils used in Liberty Health’s vaporization pens. The company’s Gainesville property is over 386 acres, allowing Liberty Health’s operations to expand and meet the high growth rates of the Florida market. Scorsis walks viewers through a visit to a Liberty Health Sciences dispensary, which provides an inviting atmosphere for patients to learn about cannabis in a user-friendly way. Liberty Health Sciences will have 30 stores operational in the state by the end of 2019 and plans to replicate its Florida model in additional states.


George Scorsis, CEO: The most interesting thing about Florida is we control the entire seed to sale. So, we control everything from the production of our product all the way to the dispensary. So, we’re permitted to open up to 30 dispensaries in Florida.

This is our room that we have all of our mothers. We’ve since retrofitted all the facilities up to our standards. We’ve also seen an output upgrade of upwards of 40 percent. So, come along and I’ll show you some of our plants.

[stock_chart symbol=”LHS:CNX” align=”left” range=”5D”]

Within this room we have three separate strands. We also have other green rooms that have other genetic profiles. One of the benefits of being in Florida is just really maximizing the potential of the sun. So, we really have some of the lowest electricity rates out of any other greenhouse that we’ve seen.

This is our processing facility. What we produce in here are our products for Mary’s Medicinals as well as PAX. We have an exclusivity within Florida. So, we produce everything from transdermals to ointments to vaporization pens. Try to offer as many options as we can.

This current facility is 40,000 square feet. We have another 250,000 square feet of state-of-the-art facility a few miles away.

This is our newest facility that we added in Gainesville. This was previously used for citrus plants. We’re retrofitting. This has a hundred and ninety thousand square feet of cultivation space. This is our newest expansion of the facility. This is 80,000 square feet. Out of this facility here alone we’re going to be doing 4,600 plants a week. The reason why we decided to go retro versus a green field program; really with the scale and the speed that Florida is growing is very important for us to keep up with the demand of the patient.

All of our facilities are monitored as well as dispensaries are monitored and we have an active security team that actually manages that aspect of our business.

Talaal Rshaidat, Chief Science Officer:  So, in here we have our dry group, we typically keep them in here for a week just to get the moisture content low enough before we move it into the next step which is the oven for decarboxylation. We’re converting the THC acid which is the natural form the plant is producing into the neutral form, which is THC.

Once the plant is dried and decarboxylated we grind the plant material and then we load it into these vessels. What we use here is a Supercritical CO2 Machine so, it can penetrate the plant material very effectively while also being able to solve the cannabinoids that we are trying to extract.

This is a solution of the CO2 extract that we saw earlier with ethanol. We leave it in a freezer and then we filter it as it’s cold as this creates a much more flavorful oil which makes it a better product for vaporizers.

George Scorsis, CEO: Our property’s over three hundred eighty six acres. One of the things we decided was not only did we want to be the best in Florida, but we need it to be the biggest. Florida will be one of the biggest states in the entire US, just as 20.6 million people. We’re starting to see growth rates that far exceed that of Canada.

This is the first 20,000 square feet that we’ve opened up at LHS.

This is our passion; this is what we do day in and day out.

So, all of our products currently are manufactured in Gainesville. From Gainesville, then we distribute to one of our four hubs that allows us same-day delivery to patients across Florida.

One of the things we wanted to do is make this feel comfortable. We wanted this to be an environment that patients didn’t want to be intimidated. They could ask questions. They could be educated and that’s why we made a very user-friendly approach to our entire store.

Everything that we grow at our Gainesville facility ultimately ends up in these products. Most of our patients don’t want to inhale cannabis, what they really want to do is take it orally or topically. Then we go into some of our Mary’s products topical solutions. They’re transdermals that are doing extremely well in our stores more for the localized pains. And then when we go into our vaporization, we have everything from a disposable all the way upwards to a PAX and PAX obviously being one of the leading technologies in the marketplace. We have an exclusivity in the market and it’s done extremely well.

It’s pretty amazing to see what we put together in Liberty in a little over a year. We’ve built now seven stores with another three more coming online and then we’re going to be on our path to having 30 stores by the end of next year. So, we’re going to have one of the largest footprints in Florida.

We’ve successfully accomplished what we said we’re going to do and now it’s time for us to move into other states and do exactly the same thing. It’s really ultimately about the patient, but I think we’ve built a model that really works and we’re happy in what we’ve built.


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