VANCOUVER, May 16, 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") for an option to acquire 100% (the
"Option") of the outstanding shares of an applicant (the
"OptionCo") under the Access to Cannabis for Medical
Purposes Regulations ("ACMPR") from OptionCo current
shareholders (the "Vendors").
OptionCo has two properties. One is located in Delta, British Columbia ("Delta
Facility") and is a state of the art, pharmaceutical grade,
cannabis production and research facility, which has been submitted
to Health Canada for final review and approval under the ACMPR. The
Company expects to receive its cultivation license for the Delta
Facility in Q2 of 2018. The other property is located in
Mission, British Columbia
("Mission Location"). The Mission Location application under
the ACMPR has been submitted and is awaiting construction of its
first 50,000 square foot state of the art, pharmaceutical grade
purposed built indoor facility ("Delta Facility" and "Mission
Location" are together referred to as the "Properties").
The Option will be exercisable at the sole option of
Invictus within 30 days after OptionCo receives its license to
cultivate under the ACMPR on the Delta Facility. The exercise price
of the Option (the "Exercise Price") will be payable as
follows:
1)
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Payment of the sum of
$2.5 million CDN in cash to OptionCo to repay agreed upon
debts;
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2)
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Issuing to the
security holders of OptionCo, within 10 business days of exercising
the Option, $10 million in common shares of Invictus valued at a
price per share being the greater of: (a) $1.65 CAD per share and
(b) Invictus' 10 day Volume Weighted Average Trading Price
("VWAP") prior to the date of exercise with the following
release schedule:
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a) 25%
within 10 business days of exercising the Option; and
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b) 25%
every 4 months thereafter.
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3)
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Investment in the sum
of $10 million CDN (the "Investment") in cash into OptionCo
to be used for the 50,000 square foot expansion of the Mission
Location and for working capital purposes. The Investment will be
in the form of a commitment from Invictus and will be transferred
to OptionCo over time on an as needed basis.
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4)
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Issuing to the
security holders of OptionCo, within 10 business days of the
Mission Location receiving its cultivation license under the ACMPR,
$7 million in common shares of Invictus valued at the VWAP
immediately prior to the date of the Mission Location receiving its
cultivation license under the ACMPR.
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The Mission Location, located on 32 acres of property of
buildable land, is currently under construction and expandable to 1
million square feet of production capacity under one ACMPR license
and has the unique ability to expand licensed infrastructure
rapidly. The location has direct access to a river providing
unlimited water and the energy costs are wholesale value and are
eligible for "Transmission Rate" with the local power authority
($.05 CDN / KwH) with 38 MG Watt
service at the property line. Invictus expects to commence
construction immediately with a target completion date of
December 2018. The Company plans on
expanding to over one million square feet of the property which has
already been zoned to accommodate this level of expansion.
Acreage Pharms Ltd. ("Acreage Pharms"), a licensed producer
under the ACMPR located in West-Central Alberta on 150 acres, has
approximately 40,000 square feet of cannabis ready production with
its recently completed Phase 2 expansion. The Company intends
on expanding to 120,000 square feet by the end of 2018 once Phase 3
is complete and is also working on plans to increase total capacity
to 360,000 square feet in 2019. Invictus is fully funded for the
Phase 3 expansion. AB Laboratories Inc. ("AB Labs"), a licensed
producer under the ACMPR located in Hamilton, Ontario currently operates in a
16,000 square foot facility and continues to make progress on its
40,000 square foot Phase 2 facility. Once completed AB Labs will
total 56,000 square foot of production capability. During the first
quarter of 2018 AB Labs submitted a secondary license to Health
Canada for a nearby property on 100 acres under the name AB
Ventures Inc. ("AB Ventures"). Once AB Ventures receives its ACMPR
license, the entire property will have the potential for cannabis
cultivation. Invictus has committed $5.5
million in funding to build out the first 21,000 square foot
building on the property with plans to expand to 105,000 square
feet of production capacity by the end of 2019. OptionCo
located on a 32-acre property expects to complete construction of
its first 50,000 square foot facility by the end of 2018 and to
expand to 300,000 square feet by the end of 2019. Overall the
Company will expand to 250,000 square feet by the end of 2018 and
to approximately 824,000 square feet by the end of 2019.
Subject to completion of satisfactory due diligence, Invictus
intends to enter into a definitive option agreement for the
purchase of the OptionCo on or before June
30, 2018.
Dan Kriznic, CEO and Chairman
commented "This is a significant milestone for Invictus as we round
out our ACMPR licenses through out the country. OptionCo will give
us a significant footprint in British
Columbia already adding to our large footprint in
Alberta and Ontario. As we continue to build out our
retail and distribution strategy, we need to have additional
capacity and plan to aggressively build out the expansion in the
short term as we gear up for the legalization of recreational
cannabis."
About Invictus
Invictus owns and operates cannabis companies in Canada with the vision of producing a variety
of high quality and low cost cannabis products and strains to the
global market place as regulations permit. Gene Simmons, music legend and media mogul,
conveys the vision of Invictus as the Chief Evangelist Officer.
Invictus operates two cannabis production sites under the ACMPR
in Canada and has over 95,000
square feet of cannabis production capacity at the licensed
production sites. The Company's wholly owned subsidiary
Acreage Pharms located in West-Central Alberta on 150 acres, has
approximately 40,000 square feet of cannabis ready production with
its recently completed Phase 2 expansion. The Company intends
on expanding to 120,000 square feet by the end of 2018 once Phase 3
is complete.
Invictus also owns 50% of AB Labs, a licensed producer under the
ACMPR located in Hamilton,
Ontario. AB Labs currently operates in a 16,000 square foot
facility and recently acquired a facility adjacent to the existing
property that will allow for a total of 56,000 square feet of
cultivation space expected to be ready for production by
June 2018. During the first quarter
of 2018 AB Labs submitted a secondary license to Health Canada for
a nearby property on 100 acres under the name AB Ventures.
Combined, the licensed producers owned by Invictus expect to
have approximately 200,000 square feet of cannabis production
capacity by the end of 2018 and 520,000 square feet of cannabis
production capacity by the end of 2019.
In addition to the ACMPR licenses, the Company has an 82.5%
investment in Future Harvest Development Ltd. a high quality
Fertilizer and Nutrients manufacturer based in Kelowna, British Columbia that has been in
operation for over 20 years under the brand Plant Life Products and
Holland Secret.
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
In the United States
Terry Wills
twills@willscom.com
310-877-1458
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Square
Footage
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Company
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Phase
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Province
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Current
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31-Dec-18
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31-Dec-19
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Acreage
Pharms
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1
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Alberta
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7,000
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7,000
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7,000
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Acreage
Pharms
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2
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Alberta
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33,000
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33,000
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33,000
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Acreage
Pharms
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3
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Alberta
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80,000
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80,000
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Acreage
Pharms
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4
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Alberta
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240,000
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Total Acreage
Pharms
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40,000
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120,000
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360,000
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AB
Laboratories
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1
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Ontario
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16,000
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16,000
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16,000
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AB
Laboratories
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2
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Ontario
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40,000
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40,000
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Total AB
Laboratories
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16,000
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56,000
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56,000
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AB
Ventures
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1
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Ontario
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21,000
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21,000
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AB
Ventures
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2
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Ontario
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80,000
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80,000
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Total AB
Ventures
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-
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101,000
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101,000
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Option Co
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1
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British
Columbia
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50,000
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50,000
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Option Co
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2
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British
Columbia
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250,000
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Total Option
Co
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-
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50,000
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300,000
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Total
Combined
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56,000
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327,000
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817,000
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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 development of
additional cannabis strains, the potential acquisition of OptionCo,
the potential production capacity of OptionCo, AB Labs, AB Ventures
and Acreage Pharms, the completion of OptionCo, AB Ventures and
Acreage Pharms' production facilities, the granting of regulatory
approval and anticipated timing of OptionCo, AB Labs reaching full
production capacity, the granting of OptionCo's first and second
license, AB Labs secondary license, the granting of a sales license
under the ACMPR to OptionCo and Acreage Pharms, expected sales of
inventory and the legalization of the recreational use of marijuana
in Canada in 2018 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 Acreage Pharms will be
successful in developing additional cannabis strains, that the
Company will be successful in exercising its option to acquire
OptionCo including obtaining TSX Venture Exchange approval of the
acquisition, that OptionCo and AB Labs will be successful in
reaching their potential production capacity on the timeline
expected by the Company, 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, OptionCo and Acreage Pharms will be
granted its sales license under the ACMPR on the terms and timeline
anticipated by the Company, expected sales of inventory will be met
and the legalization of the recreational use of marijuana 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, Acreage Pharms will not be
successful in developing additional cannabis strains or, if
developed, such strains will not have the benefits anticipated by
the Company, 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, licenses or approvals being granted on
terms or timelines that are materially worse than expected by the
Company, expected sales of inventory will not be met and the
legalization of the recreational use of marijuana 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.
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SOURCE Invictus MD Strategies