VANCOUVER, July 20, 2018 /CNW/ - INVICTUS MD
STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTC:
IVITF; FRA: 8IS1) is pleased to announce that it has entered
into a binding letter of intent ("LOI") to acquire 100% (the
"Acquisition") of the issued and outstanding shares of a
medical clinic and cannabis retail company ("Clinic and Retail
Co") that operates medical clinics in, Alberta, and is awaiting final review and
approval for a retail cannabis license from the Alberta Gaming and
Liquor Commission ("AGLC).
The medical clinics' patient-first business model features
educators and physicians on-site to educate patients about medical
cannabis and how to access it safely in Canada. In four easy steps, patients can see a
physician, access educational support, and register with a licensed
producer to begin receiving product. The cannabis clinic has 3,400
patients registered under Access to Cannabis for Medical Purposes
Regulations ("ACMPR"), providing a direct channel to
Invictus owned Licensed Producers ("LPs"), fully licensed
under ACMPR.
Invictus' multifaceted sales approach to cannabis is defined by
five pillars of distribution as follows:
- Medical cannabis through business to customer sales, as
permitted by the ACMPR;
- Sales agreements with government agencies to supply the adult
recreational market in Canada, as
evidenced by the recent Memorandum of Understanding with
British Columbia, with other
provinces to follow suit;
- Distribution agreements beyond Canada's borders, starting with Germany in 2018, as announced in recent press
release, dated June 19, 2018;
- LP to LP partnerships working together with other LP's to tap
into their distribution channels, such as our subsidiary AB
Laboratories Inc.'s ("AB Labs") partnership with Canopy
Growth Corporation (TSX: WEED); and
- Retail stores in Western
Canada with the initial launch of our flagship retail store
that will commence operations upon Clinic and Retail Co receiving
final licensing from the AGLC and will feature our lifestyle brands
and locally grown product from Acreage Pharms Ltd. ("Acreage
Pharms"), in Alberta.
Under the terms of the LOI, the purchase price includes an
upfront cash payment of $500,000 paid
on closing, and $750,000 in common
shares of Invictus on closing based on the 3-day volume weighted
average price ("VWAP") of the Company prior to the Closing
Date. In addition, future consideration will be paid based on the
achievement of certain performance milestones. The performance
milestones include certain patient metrics and the establishment of
additional medical clinics and retail locations.
The closing of the Acquisition (the "Closing Date") shall
take place on or before August 31,
2018. Within 30 days of the Closing Date, the two executive
officers ("the Officers") of Clinic and Retail Co will enter
into a management services agreement ("MSA") to operate the
day-to-day operations of the retail business, and to open more
retail storefronts and expand operations. In addition, Invictus
will provide a capital commitment of $2,000,000 (the "Investment") for
expansion of the existing medical clinic business, retail
storefront construction, and working capital purposes, to be funded
over time, as required.
Dan Kriznic, Chairman and CEO commented "The industry is now
shifting to a focus on brands and distribution. There are talks of
a shortage of supply during the first 18 months after Canada legalizes cannabis recreationally and
we are fortunate to have approximately 100,000 square feet of
production space with an additional 100,000 square feet by the end
of 2018 ready for this demand. We continue to see a need to support
the medical market as more and more seniors are requesting
information about cannabis. The acquisition of Clinic and Retail Co
fits within our 5 pillar Sales and Distribution Strategy and will
be an integral part of our operations moving forward. We have
started down the path with the Authentic Brands Group with regards
to our overall medical and lifestyle brands, which we will be
launching in the coming weeks and months."
For more information, please visit www.invictus-md.com.
On Behalf of the Board,
Dan Kriznic
Chairman and CEO
Jessica Martin
Vice President, Public Relations and Regulatory Affairs
(647) 828-9655
About Invictus
Invictus owns and operates two cannabis production facilities,
both with sales licenses, under the ACMPR in Canada, with the vision of producing a variety
of high quality and low-cost cannabis products to the global
market, as regulations permit. The Company's wholly owned
subsidiary, Acreage Pharms Ltd. ("Acreage Pharms"), is
located in West-Central Alberta. The Company's 50% owned AB
Laboratories Inc. ("AB Labs"), is located in Hamilton, Ontario. AB Ventures Inc. ("AB
Ventures") owns 100 acres of land near Hamilton, Ontario, to be used for future
cannabis cultivation. Recently, the Company announced that it has
entered into a definitive option agreement to acquire an applicant
(the "OptionCo") under the ACMPR. Combined, the Company
expects to have approximately 211,000 and 915,000 square feet of
cannabis production capacity by the end of 2018 and 2019,
respectively.
Gene Simmons, music legend and
media mogul, conveys the vision of Invictus as the Chief Evangelist
Officer.
The Company's wholly owned subsidiary, Poda Technologies Ltd.
("Poda"), has developed the world's first zero-cleaning
vaporizer system. Poda's fully biodegradable pods are
self-contained, and do not contaminate the vaporizer with odor,
flavor or residue.
Finally, the Company's 82.5% owned Future Harvest Development
Ltd. ("Future Harvest") is a high-quality Fertilizer and
Nutrients manufacturer, based in Kelowna, British Columbia. Future Harvest has
been in operation for over 20 years under the brand Plant Life
Products and Holland Secret.
Invictus' Canadian Production Footprint:
|
|
|
Square
Footage
|
Company
|
Phase
|
Province
|
Current
|
31-Dec-18
|
31-Dec-19
|
Acreage
Pharms
|
1
|
Alberta
|
7,000
|
7,000
|
7,000
|
Acreage
Pharms
|
2
|
Alberta
|
33,000
|
33,000
|
33,000
|
Acreage
Pharms
|
3
|
Alberta
|
|
90,000
|
90,000
|
Acreage
Pharms
|
4
|
Alberta
|
|
|
270,000
|
Total Acreage
Pharms
|
|
|
40,000
|
130,000
|
400,000
|
AB Labs
|
1
|
Ontario
|
16,000
|
16,000
|
16,000
|
AB Labs
|
2
|
Ontario
|
|
40,000
|
40,000
|
Total AB
Labs
|
|
|
16,000
|
56,000
|
56,000
|
AB
Ventures
|
1
|
Ontario
|
|
21,000
|
21,000
|
AB
Ventures
|
2
|
Ontario
|
|
|
84,000
|
Total AB
Ventures
|
|
|
|
21,000
|
105,000
|
OptionCo
|
1
|
British
Columbia
|
|
4,000
|
54,000
|
OptionCo
|
2
|
British
Columbia
|
|
|
300,000
|
Total
OptionCo
|
|
|
|
4,000
|
354,000
|
Total
Combined
|
|
|
56,000
|
211,000
|
915,000
|
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, timing, assumptions
or expectations of future performance, including the potential
acquisition of OptionCo pursuant to the exercise of the Option, and
the potential production capacity of OptionCo, AB Labs, AB Ventures
and Acreage Pharms, 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 that the Company will be successful in exercising the
Option and obtaining TSX Venture Exchange approval of the
acquisition, that OptionCo and AB Labs will be successful in
reaching their potential production capacity, OptionCo, AB Ventures
and Acreage Pharms' production facilities will be completed as
anticipated, regulatory approval will be granted as anticipated,
OptionCo and AB Labs will reach full production capacity on the
timeline anticipated by the Company, OptionCo will be granted its
first and second licenses, AB Labs will be granted its secondary
license on the terms and timeline anticipated by the Company, no
unforeseen construction delays will be experienced, and OptionCo
and Acreage Pharms will be granted its sales license under the
ACMPR on the terms and timeline anticipated by the Company,.
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 Company will not complete the
acquisition of OptionCo, OptionCo and AB Labs will not be
successful in reaching its potential production capacity, OptionCo,
AB Ventures and Acreage Pharms' production facilities will not be
completed as anticipated, construction delays, regulatory approval
will not be granted as anticipated and therefore, the anticipated
timing of OptionCo and AB Labs reaching full production capacity
will be delayed, AB Labs will not be granted their secondary
license, OptionCo will not be granted its first and second
licenses and OptionCo and Acreage Pharms will not be granted its
sales license under the ACMPR, and licenses or approvals being
granted on terms or timelines that are materially worse than
expected by the Company. 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.
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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SOURCE Invictus MD Strategies