VANCOUVER, BC, Dec. 16, 2020 /CNW/ - Invictus MD
Strategies Corp. (NEX: GENE.H) (the "Company") announced
today that it has entered into an agreement (the "Subscription
Agreement") for the issuance of 1,121,248,467 Invictus common
shares (the "Subscribed Shares"). The Subscribed Shares will
be equal to 90% of Invictus' issued share capital on completion of
the transaction. As a result, on completion of the
transaction existing shareholders will retain an aggregate 10%
interest in the Company. It is anticipated that the
subscription proceeds will be used to repay existing secured
creditors of the Company, to pay costs associated with the CCAA
proceedings involving the Company and its subsidiaries and to fund
a plan of compromise and arrangement (the "Plan") with the
unsecured creditors of the Company. None of the subscription
proceeds will be made available to existing shareholders of the
Company.
The subscriber of the Subscribed Shares is Invictus Strategic
Investment Inc. (the "Investor"), a privately-owned company
that is unrelated to the Company and its directors and
officers.
Completion of the Subscription Agreement is subject to condition
precedents including Court approval of the transaction and the Plan
being approved by the creditors of the Company and the Court in the
CCAA proceedings currently underway involving the Company and
certain of its subsidiaries.
The Company filed a motion for a court order to present the Plan
to the creditors of the Company and subject to receiving certain
approvals, plans to seek a sanction order from the Court approving
the implementation of Plan.
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.
Caution Regarding Forward Looking Information
This release includes certain statements and information that
may constitute forward-looking information within the meaning of
applicable Canadian securities laws. All statements in this news
release, other than statements of historical facts, including
statements regarding future estimates, plans, objectives, timing,
assumptions or expectations of future performance, including the
potential completion of the Subscription Agreement and the Plan and
the lack of any anticipated recovery for common shareholders, are
forward-looking statements and contains 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". 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. 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 their purposes.
SOURCE Invictus MD Strategies