VANCOUVER, Jan. 7, 2019 /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 ("LOI") to create a joint
venture with Cannamerica Brands Corp. ("CannAmerica") (CSE: CANA)
(OTCQB: CNNXF) and CBDistribution Company Ltd. ("CBDC") with the
intention of acquiring hemp biomass for extraction into CBD isolate
using purpose-built facilities for large scale CBD extraction.
In December 2018, President Trump
signed the $867 billion Farm Bill
which recharacterized hemp from a schedule 1 drug with high
potential for abuse to the lowest-level listed drug (schedule 5)
which includes small doses of medicines such as codeine. This
allows for mass hemp production in the
United States that is federally legal and the ability to
move hemp across state lines. Hemp is defined in the United States as cannabis with less than
0.3% THC. CBD, a non-psychoactive cannabinoid found in cannabis,
has had a surge in popularity over the past couple of years based
on its a huge range of potential health benefits and uses.
Subject to Board approval and completion of satisfactory due
diligence, Invictus intends to enter into a definitive joint
venture agreement on or before January 31,
2019. Each of the parties will receive a one-third share of
the joint venture in exchange for their respective
contribution:
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Invictus will
contribute a line of credit ("LOC") in the amount of $5 million CAD
which will be used to acquire extraction equipment, build out
infrastructure and fund working capital. The LOC will be secured by
a general security agreement over the joint venture and will bear
interest at a rate of 5% per annum;
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CannAmerica is a
pioneer in the science of cannabis extraction and post processing,
precision dosing of product, and formulation of concentrates and
oil-based vaporization products. The Company had sold more than 14
million cannabis infused gummies in the states of Colorado and
Nevada, and will contribute operational expertise, will source the
property, extraction equipment, staffing and manage operations;
and,
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3)
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CBDC will contribute
the sourcing of Hemp Biomass procurement, branding, marketing and
the commercialization of the finished product, including but not
limited to CBD Isolate.
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"We are thrilled to partner with CannAmerica and CBDC to extract
and supply CBD to the US market. This partnership represents a
great opportunity to continue expanding our footprint beyond
Canada and capitalize on
the United States' federal legal
framework that is now in place to produce and sell CBD," said
George E. Kveton, CEO of Invictus.
"This is a significant partnership for CannAmerica with world
class partners. This joint venture accelerates the Company's long
planned growth into the Hemp-based CBD market following the passing
of the Farm Bill, with extraordinary opportunities for expansion
into new markets" said Dan Anglin,
CEO and Co-Founder of CannAmerica.
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 percent 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. ("Future Harvest"), a
high-quality fertilizer and nutrients manufacturer. Invictus drives
sustainable long-term shareholder value through a diversified
product portfolio with over 70 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.
About CannAmerica Brands Corp.
CannAmerica Brands is a U.S. marine veteran founded and operated
portfolio of cannabis brands with licensing agreements in the
states of Colorado, Nevada and Maryland. The Company aims to maximize the
value of its brands by employing strong brand management teams,
marketing and licensing the brands through various distribution
channels, including dispensaries, wholesalers and distributors, in
the United States and
internationally. The Company's core strategy is to enhance and
monetize the global reach of its existing brands, and to pursue
additional strategic acquisitions to grow the scope and diversity
of its brand portfolio. For more information, please visit
www.cannamericabrands.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 Company's plan
to enter into a definitive joint venture agreement and the joint
venture's ability to extract CBD isolate from hemp biomass 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's joint venture
will be successful in extracting CBD isolate from hemp biomass and
that the Company will be successful in entering into a definitive
joint venture agreement. 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 joint
venture will not be successful in extracting CBD isolate from hemp
biomass and/or the Company will not be successful in reaching a
definitive joint venture agreement. 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 Canadian Securities Exchange nor its Regulation
Services Provider accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Invictus MD Strategies