VANCOUVER, Aug. 30, 2018 /CNW/ - 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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SOURCE Invictus MD Strategies