Invictus Secures $25.5 Million Debt Financing from ATB Financial to Fund 180,000 sq. ft. Expansion
August 08 2018 - 10:22AM
InvestorsHub NewsWire
Vancouver, BC -- August 08, 2018 -- Investors Hub Newswire --
INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company")
(TSXV: GENE; OTC: IVITF; FRA: 8IS1) is pleased to
announce that is has signed a commitment letter for a $25.5 million
debt financing arrangement with an interest rate at prime plus 2%
per annum (the “Financing”) with ATB Financial
(“ATB”) to accelerate the construction of its
Phase 3 and Phase 4 cannabis cultivation facilities (the
“Expansion Plan”) at Acreage Pharms Ltd.
(“Acreage Pharms”), located in West-Central
Alberta . The Expansion Plan will add a total of 180,000 square
feet of production capacity to Acreage Pharms. The Phase 3
expansion is underway with over $3 million in progress payments
already made for permitting, lot preparation, foundation
construction and precast installation. Phase 3 has a target
completion date of January 2019 and will bring the Company’s gross
cultivation space to 200,000 square feet. Phase 4 will be completed
by mid-2019.
“We’re ramping up production for the
adult-use market in Canada” said Dan Kriznic, Chairman and CEO of
Invictus. “As a fast-growing cannabis company, Invictus is aiming
to further strengthen its stake in the marketplace with continued
development of construction projects, quality products and retail
presence. It’s great to see traditional lenders coming into the
cannabis space and ATB has proven to be a long-term partner that
will not only help finance the Expansion Plan at Acreage Pharms but
will also finance other expansion plans as they come to fruition.
Utilizing traditional debt financing combined with equity is key to
minimizing dilution to our shareholders at the lowest cost of
capital possible. Invictus’ share structure with 96.6 million
shares issued and outstanding is one of the most efficient capital
structures in the public markets when compared to other cannabis
companies. We are working diligently on building out our 5 pillars
of success to include Medical market, adult-use market,
international market, retail market and sourcing supply from other
licensed producers. Layered within each of these 5 pillars is our
branding strategy, which is currently being finalized and expect to
be rolled out in phases over the coming weeks and months as we
continue to develop and execute the brand strategy with our
partners, the Authentic Brands Group, based out of New York, and
one of the largest branding companies on the globe.”
The Financing will be deployed in stages
and will help fund the development of two additional 90,000 square
foot purpose-built indoor cultivation facilities, including all
plans and specifications pertaining to the structural,
architectural, mechanical, electrical and interior design. Each
state-of-the-art expansion will utilize a controlled and regulated
environment for cultivation, trimming, drying and storing, and will
include 40 individual flower rooms, each with approximately 1,500
square feet of cultivation space. The Financing is expected to
close mid-August and is conditional upon the completion of final
due diligence procedures performed by ATB legal counsel.
On May 18, 2018, Acreage Pharms received
its sales license from Health Canada pursuant to the Access to
Cannabis for Medical Purposes Regulations
(“ACMPR”), which is the Company’s second sales
license under the ACMPR.
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
(604) 537-8676
About Invictus
Invictus is a global cannabis company offering a selection of
products under a wide range of lifestyle brands. Our integrated
sales approach is defined by five pillars of distribution including
medical, wholesale, international, Licensed Producer to Licensed
Producer and retail.
Invictus has partnered with business leaders to convey our
corporate vision, including KISS music legend and business mogul
Gene Simmons as our Chief Evangelist Officer, and global branding
agency Authentic Brands Group. Invictus is expanding its
cultivation footprint, with two cannabis production facilities
fully licensed under ACMPR in Canada and a third awaiting approval,
featuring 100,000 square feet of available grow space today with
200,000 expected by the end of 2018 and 1 million by end of 2019.
The Company will earmark 50 per cent of production to the medical
and recreational markets, respectively. To ensure consistency in
quality and supply, Invictus maintains all aspects of the growing
process through its subsidiary, Future Harvest Development Ltd., a
high-quality Fertilizer and Nutrients manufacturer. Invictus drives
sustainable long-term shareholder value through a diversified
product portfolio with over 69 Health Canada approved strains and a
multifaceted distribution strategy including medical, recreational,
international and retail. For more information visit
www.invictus-md.com.
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, AB Labs, AB Ventures and Acreage Pharms
will be successful in reaching their potential production capacity,
OptionCo, AB Labs, AB Ventures and Acreage Pharms’ production
facilities will be completed as anticipated, regulatory approval
will be granted as anticipated, OptionCo, AB Labs, AB Ventures and
Acreage Pharms 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 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, AB
Labs, AB Ventures and Acreage Pharms will not be successful in
reaching its potential production capacity, OptionCo, AB Labs, 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, AB Labs, AB Ventures and Acreage Pharms
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 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.
Invictus MD Strategies (CE) (USOTC:IVITF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Invictus MD Strategies (CE) (USOTC:IVITF)
Historical Stock Chart
From Sep 2023 to Sep 2024