Invictus MD Receives $9.5 million from Warrant and Option Exercises and increases target capacity in 2019 to 76,000 kg
January 15 2018 - 9:53AM
InvestorsHub NewsWire
Vancouver, BC -- January 15, 2018
-- InvestorsHub NewsWire -- INVICTUS MD STRATEGIES CORP. ("Invictus
MD" or the "Company") (TSXV: IMH; OTC: IVITF; FRA: 8IS1) is pleased to announce that since
the release of its financial results for the third quarter ended
October 31, 2017, which were filed on SEDAR on December 22, 2017,
the Company has received $9,484,547 from the exercise of previously
issued warrants and options. A total of 5,660,072 warrants and
21,000 options were exercised for proceeds of $9,476,167 and
$8,380, respectively. As a result of such exercises, the Company
currently has a total of 85,860,378 common shares issued and
outstanding.
Invictus MD’s current
cash balance is approximately $32 million. The target production
capacity for 2019 is approximately 76,000 kg based on expanding
facilities in 2019 to approximately 520,000 square feet. Invictus
MD still has approximately 18.7 million warrants outstanding that
would bring cash into the Company of approximately $33
million.
On January 8, 2018 the
Company reported AB Labs received its authorization by Health
Canada to sell dried marijuana under the ACMPR (“Sales
License”). AB Labs which has 130 kg of dried
marijuana in its vault intends to sell 100% of this inventory in
January 2018 to Canopy Growth Corporation (TSX:WEED), initiating its first
revenue stream since inception.
Invictus MD’s total
annual kilogram capacity after various phases of expansion in 2018
and 2019, complete and in progress, is expected to be approximately
76,000 kg. The expected net production capacity to Invictus MD of
approximately 67,000 kg after giving effect to the additional
investment contemplated in its Letter of Intent with AB Labs that
will bring Invictus MD’s ownership of AB Labs to 50%. With the
recent exercise of warrants and options, Invictus MD’s funded
capacity today is approximately 20,650 kg.
Dan Kriznic, Chairman
and CEO commented, “We continue to focus on utilizing our $32
million of cash in treasury to build out additional square footage
to meet the expected demand once Canada becomes recreationally
legal this year. Our current funded capacity of 20,650 kg, as well
as our planned expansion to get to approximately 76,000 kg in 2019
with a net to Invictus MD of 67,000 kg brings us in line with some
of our peers that are leading the industry. The Sales license for
AB Labs has been a catalyst to getting to this stage and the next
catalyst will be our sales license for Acreage Pharms that is
expected to occur in this first quarter of 2018.”
About Invictus
MD Strategies Corp.
Invictus MD Strategies
Corp. is focused on two main verticals within the Canadian cannabis
sector, namely the Licensed Producers under the ACMPR, being
its 100% investment in Acreage Pharms Ltd., located in West-Central
Alberta, and 33% investment in AB Laboratories Inc., located near
Hamilton, Ontario which has both its cultivation and sales license
under ACMPR. Combined the two licenses and an expected third
license under AB Ventures have an approximate annual run-rate
production capacity of 76,000 kg by 2019. In addition to ACMPR
licenses the Company has an 82.5% investment in Future Harvest
Development Ltd. a Fertilizer and Nutrients manufacturer based
in Kelowna, British Columbia.
For more information, please visit www.invictus-md.com.
On Behalf of the
Board,
Dan Kriznic
Chairman &
CEO
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 potential production capacity of 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 sales license
under the ACMPR to AB Ventures and Acreage Pharms, Acreage
Pharms’ receipt
of a sales license and the success and timing of
Acreage Pharms’ expansion plans, expected sales of inventory and
the completion of the transaction contemplated by the LOI and the
resulting increase in the Company’s ownership interest in AB Labs
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 AB Labs, AB
Ventures and Acreage Pharms will satisfy all conditions for, and
receive, regulatory approval to sell medical cannabis at their
production facilities’ full capacity, AB Ventures will satisfy all
conditions for and be granted a license under the ACMPR, AB
Ventures is able to successfully build a production facility,
Acreage Pharms will satisfy all conditions for and successfully
obtain the anticipated sales license and will successfully complete
its expansion plans, the anticipated sales of inventory will take
place on the terms and timing expected by management and all
conditions to the transaction contemplated by the LOI will be
satisfied and the transaction will complete on the expected terms.
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 AB Labs, AB Ventures and Acreage
Pharms will not receive regulatory approval to sell medical
cannabis at their production facilities for their full production
capacity or at all, that AB Labs, AB Ventures or Acreage Pharms
will not reach full production capacity, that AB Ventures will not
be granted a license under the ACMPR, that AB Ventures is not able
to successfully build a production facility, that Acreage Pharms is
not able to obtain the anticipated sales license when expected by
management or at all or is not able to successfully complete its
expansion plans, that the anticipated sales of inventory will not
occur on the terms and timing expected by management or at all and
that the transaction contemplated by the LOI will not complete on
the expected terms or at all. 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.
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