INVICTUS SIGNS LOI TO PROVIDE GTEC WITH STRATEGIC INVESTMENT AND EXPAND NATIONAL DISTIBUTION
August 30 2018 - 9:05AM
InvestorsHub NewsWire
Vancouver, BC -- August 30, 2018 -- InvestorsHub NewsWire --
INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company")
(TSXV: GENE; OTCQX: IVITF; FRA: 8IS1)
is pleased to announce that it has
entered into a binding Letter of Intent with GTEC Holdings Ltd.
(“GTEC”) (TSXV: GTEC) to provide GTEC with a
non-revolving unsecured convertible loan (the “Loan
Facility”) in an amount up to $2,000,000, and an interest
rate of prime plus 5%. Subject to regulatory approvals, all or a
portion of the principal and accrued interest on the Loan Facility
may be convertible into common shares of GTEC, at the option of
Invictus, at any time prior to or on the last business day
immediately preceding the Maturity Date, as defined below, at a
conversion price equal to $1.50 per common share (the “Conversion
Price”). Upon mutual agreement of both parties and prior to the
Maturity Date, Invictus may increase the amount of the Loan
Facility up to $6,000,000.
The proceeds from the Loan Facility will be used
by GTEC for working capital and to further execute GTEC’s cannabis
retail expansion strategy in Western Canada and Ontario.
GTEC expects to have a minimum of 15
Cannabis Cowboy retail stores open by October 17. 2018, in Alberta,
as well as 1 location in Saskatchewan, complemented by an
e-commerce platform that will serve the entire
Province.
The definitive agreement (the
“Definitive Agreement”) will also provide Invictus
with a right of first refusal to fill up to thirty percent (30%) of
any cannabis purchase order domestic or international (whether for
flower or oil) that GTEC, or its wholly-owned subsidiaries, are
seeking to purchase from third party Licensed Producers for a
period of two years. Invictus’ diversified product portfolio
features 69 Health Canada approved
strains.
“As we continue to build out our national retail
distribution strategy, we are extremely pleased at this partnership
with Invictus.” said Norton Singhavon, Chairman and CEO of GTEC.
“Having access to a diverse range of indoor premium flower fits
within our mandate to curate, develop and distribute craft cannabis
products within our retail channels. Furthermore, this partnership
with Invictus allows GTEC to immediately access increased capacity
to support our international initiatives.”
“This new partnership is designed to extend
Invictus’ footprint for cannabis distribution beyond Western
Canada, which has already secured supply agreements in British
Columbia and Alberta,” said Dan Kriznic, Chairman and CEO of
Invictus. “By actively working to establish new channels through
other provinces like Ontario, we can enhance our sales network and
ensure retailers maintain an adequate supply of high quality
cannabis as the adult recreational market evolves over time.”
The Loan Facility shall have a term that
commences on the date of the execution and delivery of a definitive
agreement (the “Definitive
Agreement”) and ends on a date that is two years
following the date of the first draw (the “Maturity Date”). The
Loan Facility shall be due and payable in full by GTEC to the
Company on the Maturity Date. GTEC will be entitled to prepay all
or a part of the Loan Facility at any time, from time to time,
without bonus or penalty. Upon mutual agreement of both parties and
prior to the Maturity Date, Invictus may increase the amount of the
Loan Facility up to $6,000,000 in aggregate, and further extend the
term of the Loan Facility. The agreement is subject to approval
from the respective Board of Directors for each company, the TSXV,
and certain holders of convertible debentures of
GTEC.
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 GTEC Holdings
Ltd.
GTEC
was founded in 2017 to capitalize on opportunities in the nascent
and rapidly growing legal cannabis industry. GTEC is focused
on growing premium quality craft cannabis in purpose-built indoor
facilities. The Company also has a number of retail cannabis
initiatives in Western Canada. GTEC currently holds a 100%
interest in GreenTec Bio-Pharmaceuticals Corp., Tumbleweed Farms
Corp., Falcon Ridge Naturals Ltd., Alberta Craft Cannabis Inc.,
Grey Bruce Farms Inc., Zenalytic Laboratories Ltd. and Spectre Labs
Inc. GTEC is a publicly-traded corporation based in Kelowna,
British Columbia. The Company’s shares are listed on the TSX
Venture Exchange and OTC Pink Sheets.
To view
more about the company or to request our most recent corporate
presentation, please visit our website at www.gtec.co.
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, adult-use recreational,
international, Licensed Producer to Licensed Producer and retail
stores.
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 January 2019 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 production capacity of
Invictus, 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 Invictus will be successful in reaching its
potential production capacity, its production facilities will be
completed as anticipated, regulatory approval will be granted as
anticipated, Invictus will reach full production capacity on the
timeline anticipated by the Company, and no unforeseen
construction delays will be experienced. 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, Invictus will not be successful in reaching its
potential production capacity, its production facilities will not
be completed as anticipated, 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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