VANCOUVER, Sept. 5, 2018 /CNW/ - INVICTUS MD STRATEGIES
CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA:
8IS1) is pleased to reflect on significant milestones that will
drive future success with the upcoming legalization of adult
recreational cannabis on October 17,
2018. We've signed landmark supply agreements with
Alberta and British Columbia, with others to follow suit.
We're scaling-up our facilities to meet demand with approximately
200,000 square feet of cultivation capacity expected by the first
quarter of 2019. We've diversifying our product portfolio by adding
69 new strains, with varying levels of THC and CBD, to satisfy a
wide range of consumers. We've developed an integrated sales
approach defined by five pillars of distribution that include
medical, recreational, international, Licensed Producer to Licensed
Producer and retail stores. Finally, we've teamed up with Authentic
Brands Group ("ABG"), a world-leading marketing and branding
agency, to launch our recreational brands Dukes, Zooey, Sterling
& Hunt, and Sinister, available under the omnichannel
Terra World.
It's All About The Brand
Last week, Invictus launched four distinct lifestyle-inspired
cannabis brands for recreational users: Dukes, Zooey, Sterling
& Hunt, and Sinister. Each brand is crafted for a specific
target audience and his or her lifestyle. Developed in partnership
with ABG, based out of New York,
Invictus brands will be made available across the Company's robust
distribution network under the omnichannel Terra World.
Dukes is positioned to bring together friends and is framed
around the idea of living in the moment. Zooey is designed with
women in mind and addresses each user's social and physical
well-being. Sterling & Hunt is aimed at the user who is a true
connoisseur in all aspects of his or her life. Sinister is a high
THC brand for the experienced user. Dukes and Zooey include a
balanced THC/CBD product and Sterling & Hunt features a medium
THC product. Products will include dried flowers, oils and
concentrates, and consumables that will be rolled out through
Invictus' wholly-owned and fully-licensed producer, Acreage Pharms
Ltd.
ABG is an experienced, international brand owner and marketing
company, responsible for managing and building the long-term value
of a global portfolio of Lifestyle, Celebrity and Entertainment
brands. ABG's brands have a retail footprint that spans the luxury,
specialty, department store, mid-tier, and e-commerce channels and
4,381 branded freestanding stores and shop-in-shops worldwide and
over 50,000 point of sale locations.
In looking for ways to innovate and activate some of the more
specialized intellectual property within the ABG portfolio,
Jamie Salter, Founder, Chairman and
CEO of ABG, found Invictus to be a natural fit. With cannabis
emerging as a growing product category within the health, wellness,
and lifestyle spaces, the partnership with Invictus provides an
opportunity to test the waters in an important, emerging
market.
We're Scaling Up!
Invictus is scaling-up its cultivation footprint with two
cannabis production facilities fully licensed under the ACMPR, and
a third awaiting approval, featuring 100,000 square feet of
available grow space today with 200,000 expected by the first
quarter of 2019 and well over 700,000 square feet by end of 2019.
Our purpose-built indoor production facilities provide the
conditions necessary for consistent and reliable products of
premium quality.
AB Laboratories Inc. and AB Ventures Inc.
AB Labs, located near Hamilton,
Ontario, currently operates a 15,600 square foot cultivation
facility, with a secondary 40,000 square foot facility scheduled
for completion this winter. AB Ventures will add even greater
capacity with its 100-acres of buildable property, also located
near Hamilton, Ontario. Both
projects will play a critical role in our production profile and
our ongoing development has been great for the region, which has
benefited from job growth associated with the construction and
operation of these facilities.
Acreage Pharms Ltd.
Acreage Pharms, located in Peers,
Alberta, is rapidly growing. Its 90,000 square foot Phase 3
expansion, targeted for completion by the first quarter of 2019,
will bring the Company's gross cultivation space to 200,000 square
feet. The new facility will feature 38 ultra-modern
environmentally-controlled grow rooms, and will be constructed to
be EU-GMP compliant and allow for lineal workflow for processing of
cannabis. Upon completion of Phase 3, Acreage Pharms plans to begin
construction of its Phase 4 facility, adding a further 90,000
square feet of production capacity. With its large land profile,
Acreage Pharms is well-positioned to grow and produce top quality
products to both the Canadian and international markets.
Acreage Pharms is well situated to keep production costs low
over the long-term due in part to Alberta's relatively affordable electricity
rates, compared to the rest of Canada. The facility is situated on one of the
largest natural watersheds and operates using its own well and
septic system, which results in zero costs for water
consumption.
Acreage Pharms possesses a filtration system which minimizes
risk of cross contamination between grow rooms, keeps out
contaminants, does not allow for uncontrolled air to enter the
growing and processing areas, and filters all incoming and outgoing
air from the facility. Our facility allows for tight control of
humidity, temperature and cleanliness, which allows all cannabis to
be grown, processed and stored under absolute ideal conditions.
Situated in the foothills of the Alberta Rocky Mountains, Acreage
Pharms benefits from ideal growing conditions with low humidity,
clean water and fresh air.
Option Co.
On July 18, 2018, Invictus
announced that it had successfully entered into a definitive option
agreement with a Late-Stage Applicant ("OptionCo") under the ACMPR
to acquire 100% (the "Option") of the outstanding shares of
OptionCo from its current shareholders (the "Vendors"). OptionCo
has a cannabis production and research facility located in
Delta, British Columbia, and an
additional property located in Mission,
British Columbia, that is currently awaiting construction of
a 350,000 square foot purpose-built indoor facility, which is
anticipated to be built in multiple phases with completion expected
for the fourth quarter of 2019. The Mission location is located on 32-acres of
buildable land.
We're Diversifying Our Product Portfolio
Flower
Invictus' diversified product portfolio includes 69 Health
Canada approved strains. Our strain innovation program is overseen
by a diverse team of horticultural experts who have a combined 20
years of experience growing cannabis.
Head Grower Brennan
Hieblinger brings five years of experience within
licensed cannabis production facilities, including both indoor and
greenhouse operations throughout all stages of cultivation and
processing.
Quality Assurance Person (QAP) Jennyka Hallewell holds a
bachelor's and master's degree in Biochemistry and a PhD in
Biomolecular Science. Jennyka brings extensive experience
investigating infectious microbes in highly regulated biosafe and
bio secure facilities.
Acreage Pharms Plant Breeder Dr. Hardevinder Sandhu holds
a bachelor's degree in Agriculture, a master's and PhD in Vegetable
Breeding. Hardevinder brings more than 15 years of experience in
agricultural/horticultural research and production.
We take no shortcuts on supplying consistent, tested cannabis
products without compromise for our medical clients. Our cannabis
is hand-trimmed and hung to dry under controlled conditions to
maximize customer satisfaction.
Oil
Acreage Pharms recently received an amended license from Health
Canada, under the ACMPR to include the production of bottled
cannabis oil and cannabis resin, effective August 3, 2018.
Acreage Pharms' closed-loop CO2 extraction process
produces high quality cannabis oils. The system performs
Subcritical and Supercritical Fluid Extraction utilizing
high-pressure carbon dioxide to extract essential oils from
botanicals, using specific temperatures and pressures to withdraw
different components from plants. Through this extraction process,
CBD and THC levels can be adjusted to ensure a diverse selection
for consumers.
Compared to solvent extractions, Acreage Pharms Supercritical
CO2 extraction is expected to be:
- Non-Toxic and Non-Carcinogenic. Oils extracted using
CO2 do not contain petroleum particles.
- Safe. The system does not use potentially flammable or
explosive petroleum-based solvents.
- Carbon-Neutral and Environmentally Friendly. The system does
not emit carbon.
- Customizable. With a wide range of temperatures, pressures and
flow rates to leverage, the system is capable of withdrawing full
profiles of natural compounds found within cannabis.
- Premium quality. The advanced system is used by top companies
to extract coffee, vanilla, tea, fruit and nuts, omega-3 oils,
fragrances, tobacco for e-cigarettes, hop-oil for beer, and
high-grade cannabis oil.
Our oil extraction program is led by highly accredited Dr.
Scott Greer, who brings a bachelor's
degree in Biochemistry, a master's degree in Plant Tissue Culture,
and a PhD in Plant Lipids to our cultivation team. With over 17
years of experience in plant-based research, including eight years
focused on plant oil production, Scott will work to develop
innovative products for the Canadian and international markets.
We're Maximizing Sales Through A Robust Distribution
Strategy
Our integrated sales approach is defined by five pillars of
distribution including medical, recreational, international,
Licensed Producer to Licensed Producer and retail stores:
- Medical cannabis through business to customer sales, as
permitted by the ACMPR, and the operation of patient-first cannabis
medical clinics in Alberta, with
development and patient acquisition overseen by our new Vice
President of Medical Sales, Sarah
Hardy, MBA;
- Sales agreements with government agencies to supply the adult
recreational market in Canada, as
evidenced by the recent supply agreements with Alberta and British
Columbia, with other provinces expected to follow suit;
- Distribution agreements beyond Canada's borders, with Germany expected in 2019, as announced in
press release dated June 19,
2018;
- Licensed Producer to Licensed Producer partnerships working
together with other Licensed Producer's to tap into their
distribution channels, such as AB Labs' partnership with Canopy
Growth Corporation (TSX: WEED) and recent Letter of Intent with
GTEC. The focus will be on purchasing cannabis from other LP's to
fulfill all the supply arrangements underway or in process;
and
- Partnerships with retail stores in Canada with the initial launch of a flagship
retail store that is expected to commence operations upon receiving
final licensing from the AGLC and will feature our recreational
lifestyle brands and locally grown product from Acreage Pharms.
Letter of Intent recently signed with GTEC Holdings Ltd. ("GTEC")
for a $2 million convertible
debenture to assist them in growing their retail store footprint
under the Cannabis Cowboy brand across Canada. GTEC has agreed to 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.
The industry today is shifting focus to brands and distribution.
With some predicting a shortage of supply during the first 18
months after Canada legalizes
cannabis recreationally, Invictus is ready to meet demand. We also
continue to see a need to support the medical market as more and
more seniors are requesting information about cannabis. We are
continually working to build out our 5 pillar sales and
distribution strategy through agreements with Alberta and British
Columbia, LOI with GTEC, and acquisition of a medical clinic
company in Alberta. Lastly, we are launching distinct brands
for the adult recreational market to help consumers identify with
Invictus products.
Creating More Value for Shareholders
Invictus has announced the proposed spinout of its wholly-owned
subsidiary, Poda Technologies Ltd. ("Poda"), by way of a plan of
arrangement, in a bid to create a stand-alone entity to conduct
business in the U.S. and internationally (the
"Arrangement"). Following completion of the Arrangement,
Poda will use its commercially reasonable efforts to apply for and
obtain a listing of the Poda common shares on the Canadian
Securities Exchange ("CSE") or other Canadian stock exchange or
quotation system.
Poda is a zero-cleaning vaporizer system, harnessing innovative
technology that can be paired with almost any vaporizable substance
including cannabis, tobacco, e-liquids, concentrates, coffee and
more. Most importantly, Poda vaporizers provide consumers with
consistent performance.
As part of the Arrangement, each common share of the Company
held by an Invictus Shareholder will be exchanged for one new
common share of the Company and one Poda common share. Holders of
outstanding options or warrants immediately prior to the effective
date will receive, upon exercise of each such option or warrant at
the same original exercise price, one new Invictus common share and
one Poda common share, in lieu of the one Invictus common share
that was issuable upon exercise of such warrant immediately prior
to the effective date.
As soon as practicable after completion of the Arrangement, the
Company's transfer agent will forward to each registered Invictus
shareholder, a letter of transmittal containing instructions for
exchanging their Invictus share certificate for certificates
representing new Invictus shares and Poda common shares to which
they are entitled under the Arrangement.
Let's Talk Money
To date, Invictus has raised over $105
million, including the most recent ATB loan for $25.5 million expected to close later this week.
Shareholders have exercised a total of 21.9 million warrants and
0.6 million options for proceeds of $23.2
million and $0.7 million,
respectively, to deploy into construction and acquisitions ahead of
the adult recreational market. As a result of such exercises, the
Company currently has a total of 96.6 million common shares issued
and outstanding.
As mentioned, Invictus has been using these proceeds to help
fund its ongoing construction program and overall operations. The
Company anticipates a total cannabis cultivation footprint of
200,000 square feet by the first quarter of 2019 and well over
700,000 square feet by end of 2019.
On August 2, 2018, Invictus began
trading on OTCQX under the symbol "IVITF." The OTCQX is the highest
tier of OTC Markets and reserved for established, investor-focused
U.S. and international companies who are distinguished by the
integrity of their operations and diligence with which they convey
their qualifications. Investor-focused companies use the quality
controlled OTCQX Market to offer investors transparent trading,
superior information, and easy access to regulated U.S.
broker-dealers.
Invictus also announces that it is has increased the
compensation payable to its previously announced investor relations
provider, Tycona Media Ltd. ("Tycona") by an additional
$100,000 in connection with a direct
mail public awareness campaign to be commenced next week.
Future Harvest
In connection with the share purchase agreement dated
March 3, 2015 between, among others,
the Company and a former shareholder, whereby the Company purchased
certain shares of Future Harvest Developments Ltd. ("Future
Harvest"), the Company will issue to a former shareholder 250,000
common shares.
Until Next Time
We want to thank our shareholders for the continued support as
we build out a vertically integrated global cannabis company. The
next 12 months will be precedent setting as we embark on the
journey to legalization recreationally in Canada. Invictus first went public in 2014 and
was the first dividend paying cannabis company giving back
$1 million to the shareholders who
supported the company since the beginning. We will continue with
this strategy as we make positive cash flow from operations. Our
management team is comprised of professionals that have built large
corporations in the past with a key focus on cash flow and growth.
We continue to utilize our skills to build shareholder value and
look forward to the months to come.
Sincerely,
Dan Kriznic, CPA/CA
Founder, CEO and Chairman
Invictus MD Strategies Corp.
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, adult-use, 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.
About Authentic Brands Group
Authentic Brands Group (ABG) is a brand development, marketing,
and entertainment company, which owns a global portfolio
of entertainment and lifestyle brands. Headquartered in
New York City, ABG manages,
elevates, and builds the long-term value of more than 33 consumer
brands by partnering with best-in-class manufacturers, wholesalers,
and retailers. Our brands have a global retail footprint in more
than 50,000 points of sale across the luxury, specialty, department
store, mid-tier, mass, and e-commerce channels and more than 4,300
branded freestanding stores and shop-in-shops around the world. ABG
is committed to transforming brands by delivering compelling
product, content, business, and immersive brand experiences.
We create and activate original marketing strategies to drive the
success of our brands across all consumer touchpoints, platforms,
and emerging media. For more information, please visit
ABG-NYC.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 the expected operation of 200,000 square feet of
cultivation capacity by the end of the first quarter of 2019, the
expected operation of over 700,000 square feet of cultivation
capacity by the end of 2019, the expected completion date of
Acreage Pharms' Phase III expansion, the anticipated construction
of Acreage Pharms Phase IV, the anticipated plan and timeline to
begin construction on OptionCo's facility located in Mission, the anticipated benefits of Acreage
Pharms' Supercritical CO2 extraction, 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 expected operation of 200,000
square feet of cultivation capacity by the end of the first quarter
of 2019 will be achieved without delay or complication, the
expected operation of over 700,000 square feet of cultivation
capacity by the end of 2019 will be achieved without delay or
complication, the expected completion date of Acreage Pharms' Phase
III expansion will be achieved without delay or complication, the
anticipated construction of Acreage Pharms Phase IV will begin
without delay or complication, the anticipated plan and timeline to
begin construction on OptionCo's facility located in Mission will be met without delay or
complication, Acreage Pharms' Supercritical CO2
extraction will operate as anticipated without complication.
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 on its anticipated timeline, Acreage
Pharms' Phase III expansion will be delayed or will not complete
due to unforeseen complications or lack of funding, Acreage Pharms'
Phase IV expansion will be delayed or will not complete due to
unforeseen complications or lack of funding, Invictus will not
exercise its option to purchase OptionCo or OptionCo's plans to
construct its Mission facility
will be delayed or will not complete due to unforeseen
complications or lack of funding and that Acreage Pharms'
Supercritical CO2 extraction will operate 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