Invictus Increases Investment in AB Laboratories
February 07 2018 - 9:29AM
InvestorsHub NewsWire
Increases Investment in AB
Laboratories
Vancouver, BC -- February 7, 2018 -- InvestorsHub
NewsWire -- INVICTUS MD STRATEGIES CORP. ("Invictus" or the
"Company") (TSXV:
IMH;
OTC: IVITF;
FRA: 8IS1) is pleased
to announce that the Company has completed the previously
announced further strategic investment in the licensed production
facility under the Access to Cannabis for Medical Purposes
Regulations (“ACMPR”), AB Laboratories Inc.
(“AB Labs”) located near Hamilton, Ontario, from
its current 33.3% ownership interest to 50%.
Dan Kriznic, Chairman and CEO commented, “This is another
significant milestone for Invictus. When we started this company in
2014 it was with the intention of becoming Canada’s Cannabis
Company. AB Labs produces high quality strains, which will meet the
increasing demand in the Canadian marketplace. Additionally we
expect to receive a sales license for Acreage Pharms Ltd.
(“Acreage Pharms”) within the first quarter of
2018.”
The terms of the investment include a direct cash investment in AB
Labs of $10 million to be used for the expansion of AB Labs’
existing facility, acquisition of the land and building at the
existing facility from the landlord, and for the acquisition of
adjacent land and building as well as the retrofitting costs for
that existing building (the “Secondary Facility”),
for a combined production space of approximately 56,000 square
feet. Invictus will make available to AB Labs a $2 million line of
credit in the event costs exceed budget during the construction
period.
Invictus’ license holders’ total annual kilogram capacity after
various phases of expansion in 2018 and 2019, complete and in
progress, is expected to be approximately 76,400 kg, based on
expanding facilities in 2019 to approximately 520,000 square feet.
The expected net production capacity to Invictus is approximately
67,000 kg after giving effect to the Invictus’ increased ownership
of AB Labs to 50%. With the recent exercise of warrants and
options, Invictus’ funded capacity today is approximately 27,200
kg.
Dan Kriznic, Chairman and CEO commented, “We continue to focus on
utilizing our $38 million of cash in treasury to build out
additional square footage to meet the expected demand once Canada
becomes recreationally legal, which is anticipated this year. With
our current funded capacity of approximately 27,200 kg and our
additional planned expansion to get our license holders to
approximately 76,400 kg in 2019 with a net to Invictus of 67,000 kg
it would bring 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 50% 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 Inc. are
expected to have an approximate annual run-rate production capacity
of 76,400 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, the
successful consolidation of the property under the AB Labs ACMPR
license and the completion of the real property transactions
contemplated by the investment agreement dated February 6, 2018
between the Company and AB Labs (the “Investment
Agreement”) 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, the consolidation of the property
under the AB Labs ACMPR license will be successful and the real
property transactions contemplated by the Investment Agreement 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, that the real property transactions
contemplated by the Investment Agreement will not complete on the
expected terms or at all and the consolidation of the property
under the AB Labs ACMPR license being unsuccessful. 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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