VANCOUVER, Aug. 8, 2018 /CNW/ - 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.
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SOURCE Invictus MD Strategies