Liberty Health Sciences: Unique Medical Marijuana Opportunity – Seeking Alpha
An interesting way to play the rapidly growing legalization of marijuana is Liberty Health Sciences (OTCPK:LHSIF). The stock recently started trading on the U.S. markets and already has a key license to operate in Florida providing a rare and attractive investment opportunity.
The backing of Canada based Aphria (OTCQB:APHQF) makes the company all that more intriguing. The ability to utilize proven techniques from Canada gives the Liberty Health Science a leg up in a quickly expanding market, but does it provide the impetus for an investment in the unknown company.
Creation Of Liberty Health
Through a $25 million investment, Canadian based Aphria that trades primarily on the TSX created what has become Liberty Health Sciences. The company made the following statement about the launch of Liberty.
Aphria used a special purpose private company called DFMMJ Investments LLC to purchase the assets of Chestnut Hill Tree Farm and a reverse merger with SecureCom Mobile to form the private company now listed under LHSIF that trades on the US exchange. Along with a $35 million investment from Clarus Securities, Aphria is now invested in a company with one of the few licenses to dispense medical marijuana in Florida where the demographics are very promising.
The transaction with Aphria provides the company the Aphria medical brand along with the greenhouse growing IP system for a 3% perpetual license. Liberty Health has already seen considerable yield improvements at the Chestnut property.
At the end of September, the Florida Department of Health, Office of Medical Marijuana Use approved the transfer of the license to cultivate and dispense marijuana in the state from Chestnut Hill Tree Farm LLC to Liberty. The move sets the company up to move forward with the facility expansion plans and to start opening up dispensaries all over the state.