VANCOUVER, April 5, 2017 /CNW/ - INVICTUS MD STRATEGIES
CORP. (TSXV:IMH) ("Invictus MD" or the "Company"),
Canada's Cannabis Company, is
pleased to provide a month in review.
March was a transformational time for Invictus MD as it worked
to expand and solidify its cultivation portfolio with expansion
plan forecasts of 50,000 kilograms of high quality cannabis
production by 2020.
CBC News learned that marijuana could be legal in Canada by July 1,
2018 and 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 would be in charge of making sure the
country's marijuana supply is safe and secure, and Ottawa will license producers.
It's reported that 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 41 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 and during March, many
significant milestones were achieved. Some of those highlights
are as follows:
- On March 2nd the company
announced that it had closed its previously announced bought deal
private placement with Canaccord Genuity Corp. and Eventus Capital
Corp., including a portion of the over-allotment option, for
aggregate gross proceeds of $16,218,065. A total of 9,829,130 units,
including those pursuant to the exercise of the over-allotment
option, were issued at a price of $1.65 per Unit.
- On March 14th the Company
completed its final commitment with a cash transaction of
CAD$2,000,000 to acquire 33.33% of AB
Laboratories Inc. ("AB Labs"), a Licensed Producer under the Access
to Cannabis for Medical Purposes Regulations ("ACMPR") which
maintains a 16,000 square foot facility located in Hamilton, Ontario. Invictus MD has the right
of first refusal to arrange any initial public offering, reverse
take-over or other going public transaction of AB Labs.
- AB Labs had 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 Labs has already
received a number of direct inquiries from patients, which
underscores the continuously growing demand.
- AB Ventures Inc.'s ("AB Ventures"), a newly incorporated
company formed to develop a second licensed expansion facility
through it's common ownership with AB Labs, 100-acre acquisition is
scheduled to close on May 1, 2017,
and once licensed under the ACMPR, will be used for future cannabis
cultivation. Invictus MD made a commitment to invest $5.5 million, which was in addition to the
$2 million already funded for the
land acquisition plus working capital, and will provide Invictus MD
with a 33.33% interest in AB Ventures. Funds will be used for the
costs of licensing approval under the ACMPR, and constructing the
initial 42,000 square foot cultivation facilities, with plans to
construct an additional five production facilities on the new land
totalling 100,000 square feet. In preparation for a fully compliant
application, AB Ventures will be using AB Labs respective persons
in charge that have already been cleared by Health Canada, reducing
the amount of time to get a secondary license, as security
clearance is a lengthy process under the ACMPR approval process.
With licensing in place as expected, production at AB Ventures is
anticipated to start as early as December
2017.
- 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.
- Invictus MD closed the definitive option agreement to acquire
100% interest in OptionCo., and on March 30,
2017 announced that OptionCo had received its license to
cultivate under the Access to Cannabis for Medical Purposes
Regulations ("ACMPR") as Acreage Pharms Ltd. ("Acreage Pharms"),
who has constructed a 6,800 square foot production facility with an
expansion plan floor plate of 30,000 square feet, and the option to
add a 20,000 square foot mezzanine that sits on 150 acres of land
in Edson, Alberta. Alberta has low cost of production as a result
of low energy and water costs. 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 will create. Acreage Pharms also has plans to produce
extracted or oil based products oils are rapidly gaining market
share in the marijuana sector. By 2020 Acreage Pharms anticipates
production to exceed 25,000 kilograms of high quality, low cost
cannabis.
- On March 30, 2017 Invictus MD,
Canada's Cannabis Company,
announced that its common shares would be listed on the TSX Venture
Exchange ("TSXV") commencing at the open of trading on March 31, 2017; the Company's trading symbol
"IMH" will remain the same. Invictus MD's move from the CSE to the
TSXV follows a year of significant achievements.
"As one of the few cannabis producing companies in North America listed on a major exchange such
as the TSXV, that move will enable us to engage a wider investor
audience," said Dan Kriznic, Chairman & CEO, Invictus MD. "We
are strongly focused on building our shareholder value. With 250
acres of cultivation space that stretches from Alberta to Ontario, allowing for purpose built production
facilities rather than retrofitting existing buildings, we now have
the largest land package in Canada
for building cultivation facilities as demand increases and we will
continue the disciplined but agile execution of our business
strategy," added Kriznic.
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 an investment in a fully licensed
facility, AB Laboratories Inc. as well as the option to now acquire
100% of 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
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 timing and
completion of the definitive agreement with Acreage Pharms, the
proposed exercise of the Option and acquisition of Acreage Pharms,
the potential production capacity of the Property and Acreage
Pharms's expectations to receive a a cultivation license under the
ACMPR 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 the Company
will be satisfied with its due diligence on Acreage Pharms, that
the Company will obtain stock exchange and all other applicable
regulatory approvals of the proposed Option, that the Company will
raise sufficient funds to exercise the Option, that Acreage Pharms
will abide by and pass all regulations and inspections required
under the ACMPR and be issued a cultivation license and that Health
Canada will approve the required facilities to meet the anticipated
production capacity of the Property. 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 the proposed exercise of the
Option may not occur as planned; the timing and receipt of
requisite approvals and failure of the Company to raise sufficient
funds to exercise the Option; Acreage Pharms will not abide by and
pass all regulations and inspections required to be issued a
cultivation license under the ACMPR and Health Canada will not
approve the required facilities to meet the anticipated production
capacity of the Property. 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