VANCOUVER, Nov. 16, 2018 /CNW/ - INVICTUS MD STRATEGIES
CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA:
8IS1) is pleased to announce that it has successfully exercised
its option to acquire 100% (the "Option") of the outstanding shares
of 0989561 B.C. Ltd. ("Canandia")
from its current shareholders (see press releases dated:
May 16, 2018, July 18, 2018 and October
15, 2018, for more details).
Canandia features two properties located in Delta (the "Delta Facility") and Mission (the
"Mission Location"), British
Columbia. The Delta Facility includes a cultivation,
production and research facility, recently licensed under the
Cannabis Act and Cannabis Regulations. The Mission Location
includes 32 acres of buildable land, expandable up to 1 million
square feet of production capacity under one Cannabis Act and
Cannabis Regulations license. The Mission Location taps into
wholesale energy costs with 38 MG Watt service at the property
line, and access to an ample water supply from underground
aquifers, making it a strategically attractive and cost competitive
addition to Invictus' current cultivation footprint. The Mission
Location is featured in this video.
The acquisition of Canandia represents the Company's third
cultivation facility licensed by Health Canada under the Cannabis
Act and Cannabis Regulations. The Company is headquartered in
British Columbia and the
acquisition is a natural fit for Invictus. Invictus' production
portfolio now includes licensed cannabis operations in the
provinces of British Columbia,
Alberta and Ontario, which is key to the Company's plan to
scale production to meet domestic and international demand for
premium grade cannabis.
"We are continuing to expand our cultivation footprint to
strengthen our ability to control a steady supply of cannabis to
medical and recreational markets, both at home and abroad," said
George Kveton, CEO of Invictus.
"Each of our three purpose-built licensed facilities are designed
with separate environmentally-controlled grow rooms to allow for
maximum flexibility as we adapt our strains and product offerings
to meet the needs of recreational consumers and medical patients
alike, over the long-term."
"After careful market consideration, we decided that combining
Canandia's current and planned production capacity with the highly
qualified management team and financial might of Invictus will
result in a sum greater than its parts. Together we expect to
expeditiously implement our staged growth plan so as to bring high
quality products to our adult consumers," said Alon Amit CEO,
Canandia.
With a shortage of supply in the market, Invictus remains
focused on scaling production to address demand with up to 200,000
square feet of cultivation capacity expected to come online in the
first quarter of 2019. Timing remains contingent on obtaining
requisite Health Canada licensing and approvals.
The exercise price of the Option (the "Exercise Price") was as
follows:
a)
|
$2.4 million in
common shares of the Company (the "First Consideration Common
Shares") at $1.32 per common share. The First Consideration Common
Shares will be subject to a 4 month hold period;
|
b)
|
$10 million in common
shares of the Company (the "Second Consideration Common Shares") at
$1.65 per common share with the following release
schedule:
|
|
|
|
a.
|
25% of the Second
Consideration Common Shares on the closing; and
|
|
b.
|
25% of the Second
Consideration Common Shares every 4 months thereafter.
|
|
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c)
|
$10 million
investment (the "Investment") in cash into Canandia to be used for
expansion of the Mission Location and working capital purposes. The
Investment will be paid into Canandia over time on an as-needed
basis; and
|
d)
|
$7 million in common
shares of the Company issued to the Vendors on the date that is
within 10 business days of the Mission Location receiving its
cultivation license under the Cannabis Act and Cannabis
Regulations, valued at the greater of $1.06 per share and the 10
trading days Volume Weighted Average Price ("VWAP") on the TSXV
immediately prior to the License Date.
|
For more information, please visit www.invictus-md.com.
On Behalf of the Board,
George E. Kveton
Chief Executive Officer and Director
Jessica Martin
Vice President, Public Relations and Regulatory Affairs
(833) 879-4363
About Invictus
Invictus is a global cannabis company offering a selection of
products under a wide range of 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. To meet growing demand, Invictus is expanding its
cultivation footprint, with three cannabis production facilities
licensed under the Cannabis Act and Cannabis Regulations in
Canada. To accommodate
international sales, Invictus' wholly-owned subsidiary, Acreage
Pharms Ltd. ("Acreage Pharms"), has designed and is currently
building its Phase 3 purpose-built cultivation facility to be
European Union Good Manufacturing Practices ("EU-GMP") compliant.
The Company is targeting up to 50 per cent of production to medical
cannabis. 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, adult-use, international,
Licensed Producer to Licensed Producer and retail stores. 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 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, Canandia's
growth plan will be implemented as expected by management. 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, Canandia's growth plan will be
unexpectedly delayed and licenses or approvals will be 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