VANCOUVER, Jan. 8, 2018 /CNW/ - INVICTUS MD STRATEGIES
CORP. ("Invictus MD" or the "Company") (TSXV: IMH; OTC: IVITF; FRA:
8IS1) is pleased to announce that the Company has entered into
a Letter of Intent ("LOI") to make a 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%. Additionally, the Company is
pleased to announce that AB Labs has received the amendment to sell
dried marijuana under the ACMPR ("Sales License").
AB Labs has now received its Sales License to sell dried
marijuana under the ACMPR. AB Labs has 130 kilograms of dried
marijuana in its vault and intends to sell 100% of this inventory
in January 2018 to Canopy Growth
Corporation (TSX:WEED) initiating its first revenue stream
since inception.
Dan Kriznic, Chairman and CEO
commented, "This is a significant milestone for Invictus MD. We
started this company in 2014 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. We also expect to receive a
sales license for Acreage Pharms Ltd. ("Acreage Pharms")
within the first quarter of 2018."
The terms of the LOI include a direct cash investment in AB Labs
for $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 an adjacent land and building including retrofitting
costs towards the existing building on the adjacent property (the
"Secondary Facility"), for a combined production space of
approximately 56,000 square feet. Invictus MD will make available
to AB Labs a $2 million line of
credit in the event costs exceed budget during the construction
period. The LOI is subject to various conditions including
approval of Invictus MD's board as well as satisfactory completion
of due diligence. There can be no assurance that the
transaction contemplated by the LOI will complete.
Production Capacity
Total annual kilogram capacity after various phases of expansion
in 2018, complete and in progress, is expected to be approximately
26,000 kilograms, with the expected net production capacity to
Invictus MD of approximately 22,150 kilograms after giving effect
to the additional investment contemplated in the LOI that will
bring Invictus MD's ownership of AB Labs to 50%. AB Ventures Ltd.
("AB Ventures") has submitted its license application to
Health Canada as well as its development permit for the initial
Phase 1 construction. Currently Acreage Pharms and AB Labs have a
total of 280 kilograms of dried marijuana in their vault. AB Labs
plans to sell 100% of its inventory in the month of January 2018. A detailed summary of expected
production at Acreage Pharms, AB Labs and AB Ventures and the net
capacity to Invictus MD assuming completion of the transaction
contemplated by the LOI is as follows:
|
Square Feet
|
Status
|
%
Funded
|
KG's Produced to
Date
|
KG Capacity
|
Forecast Invictus
MD Ownership
|
Invictus MD KG Capacity
|
Acreage
Pharms
|
|
|
|
|
|
|
|
Phase 1
|
6,600
|
Complete
|
100%
|
150
|
600
|
100%
|
600
|
Phase 2
|
33,000
|
31-Jan-18
|
100%
|
-
|
4,400
|
100%
|
4,400
|
Phase 3
|
80,000
|
30-Sep-18
|
40%
|
-
|
14,000
|
100%
|
14,000
|
Total Acreage
Pharms
|
119,600
|
|
|
150
|
19,000
|
100%
|
19,000
|
AB
Laboratories
|
|
|
|
|
|
|
|
Phase 1
|
15,600
|
Complete
|
100%
|
130
|
900
|
50%
|
450
|
Phase 2
|
40,000
|
15-Jun-18
|
100%
|
-
|
4,000
|
50%
|
2,000
|
Total AB
Laboratories
|
55,600
|
|
|
130
|
4,900
|
50%
|
2,450
|
AB
Ventures
|
|
|
|
|
|
|
|
Phase 1
|
21,000
|
Pre-license
|
100%
|
-
|
2,100
|
33%
|
700
|
Total AB
Ventures
|
21,000
|
|
|
-
|
2,100
|
33%
|
700
|
TOTAL
|
196,200
|
|
|
280
|
26,000
|
|
22,150
|
"The increase in our ownership of AB Labs and the renovations of
the Secondary Facility will dramatically advance our timeline for
increasing our annual run-rate production capacity at our
facilities to 26,000 kg in 2018 in time for the adult-use market."
said Dan Kriznic, Chairman and CEO,
of Invictus MD. "Increasing our canopy footprint has been a
sharp focus of the Company. Our production will satisfy the
significant demand in Canada for
high quality, standardized, pesticide free product for the current
medical cannabis market and recreational market that is expected to
begin mid 2018. The receipt of AB Labs' Sales License was another
significant milestone and the final and crucial missing piece for
AB Labs on the regulatory pathway to becoming a fully licensed
producer. The issuance of the sales and distribution amendment to
AB Labs' cultivation license is a significant value catalyst for
our shareholders."
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 33% 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 have an
approximate annual run-rate production capacity of 26,000 kg in
2018. 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 and the completion of the transaction
contemplated by the LOI 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 and all conditions to the transaction
contemplated by the LOI 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 and that the transaction
contemplated by the LOI will not complete on the expected terms or
at all. 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