Liberty stock is up 8% today after Liberty Health Sciences (CSE:LHS) (OTCQX:LHSIF) raised over $14 million USD from the sale of assets.
The sale comprises of two separate transactions. The first of which was the sale of the company's Chestnut Hill Tree Farm site in Alachua County, Florida, which includes greenhouses and a total cultivation area of 21,600 square feet. The company has confirmed it will shift its focus to its 387-acre state-of-the-art LHS 360º Innovation Campus in Gainesville, Florida ("Liberty 360"), which was retrofitted for cultivation in March and has 190,000 square feet of greenhouse space.
The second transaction relates to the sale of the company's assets and investments in joint ventures in Ohio, which includes a dispensary license operating under the name "Mad River Remedies." Liberty Health Sciences did not name who these sales had been made to; however, given that the joint ventures in Ohio were entered into with real-estate firm Schottensteins, it's most likely that it was the purchaser of the Ohio assets.
Investors Optimistic on Liberty Stock
Today's announcement has gone down well with investors in Liberty stock, which is currently up 8%, and it's not hard to see why. The company received some much-needed cash by cutting loose a facility for which it has no further need, as well as reducing its investment in what appeared to be a slowly progressing venture in Ohio.
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Liberty stock has had a turbulent year so far, with shares currently down about 75% from a 52-week high of $1.60 last December. Investors will be hoping that today's announcement might finally signal some light at the end of the tunnel, as the shift in focus to Liberty 360 represents a big opportunity for the company to assert its dominance in the Florida market where it currently operates 16 dispensaries. In March, Liberty Health Sciences became one of the first firms in Florida to receive approval to dispense flower products to patients.
"Our primary focus has been on expanding Liberty 360 facility located in Gainesville," said Victor Mancebo, Interim Chief Executive Officer of Liberty. "Growing our cultivation, processing, manufacturing, and distribution areas has been pivotal to support the allotment of dispensaries in Florida. At Liberty 360 we have plenty of room to grow and overcompensate for the market demand."
Given that the company is buoyed with an additional $14 million USD in cash as its new facility gears up for full operation, and at just $0.32 a share, perhaps now is the time to be closely watching Liberty stock.
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