VANCOUVER, April 26, 2017 /CNW/ - INVICTUS MD STRATEGIES
CORP. ("Invictus MD" or the "Company") (TSXV: IMH; OTC: IVITF; FRA:
8IS) is pleased to announce that it has acquired 100% of the
shares of Acreage Pharms Ltd. ("Acreage Pharms"), a licensed
producer of Cannabis under the Access to Cannabis for Medicinal
Purposes Regulations ("ACMPR").
The Company is pleased to announce the appointments of the
vendors to the Company's management team. Trevor Dixon has been appointed director and
Chief Executive Officer of the Company and Brenda Dixon has been appointed the Chief
Science Officer of the Company. Dan Kriznic will continue his
leadership role as Executive Chairman of the Company.
"This is an exciting day for Invictus MD, and our
shareholders. With the Company's acquisition of 100% of
Licensed Producer Acreage Pharms in Alberta, we now have 250 acres of cultivation
space that stretches from Alberta
to Ontario. Acreage Pharms will
benefit from a low cost of production as a result of low energy and
water costs. Additionally the property is friendly to building as
many square feet as required based on the significant demand, which
Deloitte reports to be between $4.9 billion
and $8.7 billion annually. I'm also very pleased with
Trevor's appointment as CEO, a highly successful entrepreneur and
businessman, and also with Brenda's appointment. Invictus MD
is fortunate to have both of the Dixons on board, in capacities
that will see the Company continue to rapidly expand in the
burgeoning cannabis sector. We are Canada's Cannabis Company," said Kriznic.
"I'm passionate about researching and producing products that
have the potential to improve the quality of life for fellow
Canadians and am very pleased to be a part of this amazing
industry, Invictus MD, and its team of forward thinking
professionals." stated Trevor Dixon,
President and CEO.
The Company and the vendors amended the composition of the
purchase price for Acreage Pharms concurrently with closing to: (i)
decrease the share consideration by one million shares, to
20 million common shares; and (ii) increase the cash
consideration by $2 million, to
$6 million. The terms of the three million warrants
issued to the vendors with an exercise price of $1.50 per warrant, of which one third will expire
every six months on the anniversary of closing, were not
changed. Please see the Company's news release dated
February 24, 2017 for additional
information.
Canada's cannabis industry
could reach $22.6 billion over the
coming years, according to Deloitte, of which the retail market
could be worth up to $8.7 billion.
With only 43 producers licensed by Health Canada thus far, there's
a significant market opportunity for Invictus MD to capitalize on
this growth over time. The Company has focused on building
its production profile, which includes:
- AB Laboratories Inc. ("AB Labs"), a Licensed Producer
under the ACMPR, has successfully conducted test crops and is
currently operating at half capacity, with full production capacity
scheduled by the end of May 2017.
They have also acquired a number of different strains and are
negotiating numerous others for R & D purposes.
- AB Ventures Inc. ("AB Ventures") 100-acre acquisition is
scheduled to close on May 1, 2017,
which once licensed under the ACMPR, will be used for future
cannabis cultivation. Invictus MD has made a commitment to invest
$5.5 million, which will be used to
fund the costs of licensing approval under the ACMPR and the
initial construction of 42,000 square feet. Considering the
magnitude of AB Ventures' land acquisition and future production
facilities, and assuming AB Ventures obtains a license to produce
the quantity forecasted for the proposed facility, the combined
production capacity of both AB Labs and AB Ventures is expected to
exceed 25,000 kilograms in 2020.
- Acreage Pharms has constructed a 6,800 square foot production
facility and has an expansion plan floor plate of 30,000 square
feet, with an option to add a mezzanine. The large 150-acre land
package provides the capability to construct facilities to meet the
demand that the coming adult recreational marijuana use will
create. Acreage Pharms also has plans to produce extracted or oil
based products, which are rapidly gaining market share in the
cannabis sector. By 2020, Acreage Pharms anticipates production to
exceed 25,000 kilograms of high quality, low cost cannabis.
"From day one, we have been very clear: to acquire and grow
production capacity under the ACMPR that would allow us to seize
the recreational market, when available, was the key driver to
increasing shareholder value", said Dan Kriznic. "Given our ability
to aggressively expand the commercial scale of the Acreage Pharms
property, we will make key capital investments that enable us to
rapidly ramp up production capability."
Canada is on the global stage
for cannabis legalization and moves closer to making history by
being the first G-7 nation to legalize and regulate access to
cannabis for responsible adult consumption and we welcome the
regulatory framework around legalization while reducing access for
underage Canadians, keeping profits out of the hands of the black
market, and ensuring that customers are protected by having access
to clean and safe product. This is of utmost importance, given the
expected demand that will come with cannabis legalization for the
recreational market.
We embrace the role we will play in the establishment of a
secure environment for the continued development of a new cannabis
economy that will generate even greater investment, innovation,
economic development and job creation to many locations across
Canada.
As Canada embarks on this
historic and brave path, Invictus MD looks forward to working
alongside all levels of government to achieve its goal of
keeping cannabis out of the hands of youth and
establishing a legitimate market while eradicating the black
market.
In connection with the closing, the Company issued to an arm's
length finder a fee consisting of common shares and cash based on
5% of the consideration paid in this transaction.
About Invictus MD Strategies Corp.
Invictus MD Strategies Corp. is focused on three main verticals
within the burgeoning Canadian cannabis sector: Licensed Producers
under the ACMPR including investment in the fully licensed
facilities operated by AB Laboratories Inc. and Acreage Pharms
Ltd.; Fertilizer and Nutrients through Future Harvest Development
Ltd.; and Cannabis Data and Delivery, with its wholly owned
subsidiary Poda Technologies Ltd.
For more information, please visit www.invictus-md.com.
On Behalf of the Board,
Dan Kriznic
Executive Chairman
Larry Heinzlmeir
Vice President, Marketing & Communications
604-537-8676
Cautionary Note Regarding Forward-Looking Statements: This
release includes certain statements and information that may
constitute forward-looking information within the meaning of
applicable Canadian securities laws or forward-looking statements
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. All statements in this news release,
other than statements of historical facts, including statements
regarding future estimates, plans, objectives, assumptions or
expectations of future performance, including the Company's
anticipated revenue, the value of the cannabis market in the future
as stated by Deloitte, the potential production capacity of the AB
Labs, AB Ventures and Acreage Pharms' production facilities, the
granting of regulatory approval and anticipated timing of AB Labs
reaching full production capacity, the granting of a license under
the ACMPR to AB Ventures, the success and timing of AB Ventures
acquisition of 100-acre of land are forward-looking statements and
contain forward-looking information. Generally, forward-looking
statements and information can be identified by the use of
forward-looking terminology such as "intends" or "anticipates", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "should", "would" or
"occur". Forward-looking statements are based on certain material
assumptions and analysis made by the Company and the opinions and
estimates of management as of the date of this press release,
including the assumptions that recreational use of cannabis will be
legalized, AB Labs, AB Ventures and Acreage Pharms will receive
regulatory approval to produce cannabis at their production
facilities' full capacity, AB Ventures will be granted a license
under the ACMPR, AB Ventures is able to successfully negotiate and
close the 100-acre land acquisition, AB Ventures is able to
successfully build a production facility. These forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking statements or forward-looking information.
Important factors that may cause actual results to vary, include,
without limitation, the risk that recreational use of cannabis will
not be legalized, AB Labs and Acreage Pharms will not receive
regulatory approval to produce cannabis at their production
facilities' full production capacity, AB Ventures will not be
granted a license under the ACMPR, AB Ventures is not able to
successfully negotiate and close the 100-acre land acquisition, AB
Ventures is not able to successfully build a production facility.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and
forward-looking information. Readers are cautioned that reliance on
such information may not be appropriate for other purposes. The
Company does not undertake to update any forward-looking statement,
forward-looking information or financial out-look that are
incorporated by reference herein, except in accordance with
applicable securities laws. We seek safe harbor.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Invictus MD Strategies