Invictus MD Outlines Growth of Production Capacity to Seize Cannabis Recreational Market
March 28 2017 - 10:30AM
InvestorsHub NewsWire
VANCOUVER, BC
-- March 28, 2017 -- InvestorsHub NewsWire -- INVICTUS MD
STRATEGIES CORP. ("Invictus MD" or the "Company") (CSE:
IMH;
OTC: IVITF; FRA: 8IS) Invictus MD is pleased to
provide an update of its production capability in preparation for
the recreational cannabis market.
Marijuana could be
legal in Canada by July 1, 2018; according to CBC News, they have
learned that the legislation will be announced during the week of
April 10 and will broadly follow the recommendation of a federally
appointed task force that was chaired by former liberal Justice
Minister Anne McLellan. CBC News further reported that the federal
government will be in charge of making sure the country's marijuana
supply is safe and secure, and Ottawa will license
producers.
Canada's cannabis
industry could reach $22.6 billion over the coming years, according
to Deloitte, with a retail market worth up to $8.7 billion. With
only around 40 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. Some of those highlights
are as follows:
- AB
Laboratories Inc. ("AB Labs"), a Licensed Producer under the Access
to Cannabis for Medical Purposes Regulations ("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, and once licensed
under the ACMPR, will be used for future cannabis
cultivation with plans to
construct five production facilities on the new land totalling
100,000 square feet. 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 constructing the initial
42,000 square foot cultivation facilities. 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.
- Closed the definitive option agreement to
acquire 100% interest in OptionCo., who has constructed a 6,800
square foot production facility with an expansion plan floor plate
of 30,000 square feet, the option to add a mezzanine that sits on
150 acres of land. This large land package of up to 3 million
square feet of buildable property, has a footprint larger than 60
football fields, and provides the capability to construct
facilities to meet the demand that the coming adult recreational
marijuana use demand will create. OptionCo. also has plans to
produce extracted or oil based products oils are rapidly gaining
market share in the marijuana sector. With its
pre-license inspection conducted in January of this year, OptionCo
expects to receive a licence to cultivate under the ACMPR in short
order and by 2020 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, Chairman and CEO of Invictus MD. "Given our
ability to aggressively expand the commercial scale of the OptionCo
property, we will make key capital investments that enable us to
rapidly ramp up production capability."
About Invictus
MD Strategies Corp.
Invictus MD Strategies
Corp., Canada's Cannabis Company, is focused on three main
verticals within the burgeoning Canadian cannabis sector: Licensed
Producers under the ACMPR; 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
Chairman &
CEO
604-368-6437
Larry
Heinzlmeir
Vice President,
Marketing & Communications
604-537-8676
CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS: This news release contains
certain "forward-looking statements" within the meaning of such
statements under applicable securities law. Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. These statements are only predictions.
Various assumptions were used in drawing the conclusions or making
the projections contained in the forward-looking statements
throughout this news release. Forward-looking statements are based
on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. There is no assurance that the Proposal
will be completed on the terms or within the timeframe contemplated
in this news release or at all. The Company is under no
obligation, and expressly disclaims any intention or obligation, to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
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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