VANCOUVER, Jan. 26, 2018 /CNW/ - INVICTUS MD
STRATEGIES CORP. ("Invictus MD" or the "Company") (TSXV: IMH; OTC:
IVITF; FRA: 8IS1) is pleased to announce the sale of its first
120 kg of dried flower from AB Laboratories Inc. (AB Labs),
the licensed production facility under the Access to Cannabis for
Medical Purposes Regulations ("ACMPR"), near Hamilton to Canopy Growth Corporation
(TSX:WEED), putting Invictus MD's license holders on track for
achieving 26,000 kg run-rate production capacity for 2018 with net
capacity of 22,150 kilograms to Invictus MD.
Additionally, the Company is pleased to announce that it has
signed the definitive agreement to make its further strategic
investment in AB Labs, from its current 33.3 percent ownership
interest to 50 percent.
AB Laboratories' products will be used in Canopy Growth
Corporation's curated CraftGrow line on Tweed Main Street's online
store. Tweed Main Street features only high-quality cannabis by an
elite group of producers, and AB Labs is thrilled that consumers
will find its product as part of the Tweed Main Street's carefully
curated selections.
"Patients routinely get in touch with AB Labs inquiring about
our high-quality product. Now, they can take advantage of Canopy
Growth's Tweed Main Street to gain immediate and detailed
information about our artisan cannabis. The effort gives us
immediate access to the largest customer base in the rapidly
expanding medical cannabis market," said Dan Kriznic,
Chairman and CEO of Invictus MD. "Our collaboration with
Canopy Growth demonstrates our commitment to making the sector
strong and helping to expose medical cannabis patients visiting
Tweed Main Street, to another high quality, unique brand."
"On behalf of the Canopy Growth team, I want to congratulate the
AB Labs team for achieving this milestone," said Mark Zekulin, president, Canopy Growth. "AB Labs
is now the second CraftGrow partner to successfully transfer
cannabis products to be sold through our Tweed Main Street
e-commerce platform. We hope to have AB Labs cannabis available to
our customers this quarter and look forward to many more successful
transfers in the future."
The Company's finalization of the definitive agreement to
increase investment in the licensed production facility AB Labs
marks another important milestone for Invictus MD as
Canada moves within six months of
the expected full adult-use legalization of cannabis. AB Labs
received the amendment to sell dried marijuana under the ACMPR
("Sales License") earlier this month.
The terms of the definitive agreement 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.
Invictus MD also expects its 100% owned subsidiary Acreage
Pharms Ltd. to receive its sales license in the first quarter of
2018 as it has already harvested multiple successful crops and
product has already been tested. The submission of another license
application to Health Canada by AB Ventures Ltd. ("AB Ventures"),
and AB Ventures' development permit on the 100 acres of land for
the initial Phase 1 construction that is fully funded, signals
another key milestone as Invictus MD continues to build out
significant kilogram capacity for the expected domestic and
international demand.
"The increase in our ownership of AB Labs and the renovations of
the Secondary Facility that will provide a combined production
space at AB Labs and Acreage Pharms of approximately 95,000 square
feet, will dramatically advance our timeline for increasing our
expected annual run-rate production capacity at our facilities to
26,000 kg's in 2018 and 76,000 kg's in 2019 in time for the
adult-use market. Invictus MD's funded capacity today is
approximately 20,600 kg's making it one of the top licensed
producers in Canada" said Dan
Kriznic, Chairman and CEO, of Invictus MD. "Increasing our
production capacity 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."
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 are
expected to have an approximate annual run-rate production capacity
of 76,000 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, timing, 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 increase in the
Company's ownership of AB Labs pursuant to the definitive agreement
(the "Transaction") 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 and will receive a development
permit on the expected terms, 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, all conditions to the closing of the
Transaction will be satisfied and the Transaction will complete on
the terms set out in the definitive agreement and that the
legalization of recreational use of cannabis in Canada will occur as expected. 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 or will not receive a
development permit on the expected terms or at all, 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 Transaction will not complete on
the expected terms or at all and that the legalization of
recreational use of cannabis in Canada will not occur at all or as expected.
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