VANCOUVER, Feb. 7, 2018 /CNW/ - 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.
SOURCE Invictus MD Strategies