Invictus MD Jumpstarts Revenue Stream With Sale of First 120 kg of Flower to Canopy Growth Corporation; Signs Definitive Agre...
January 26 2018 - 10:14AM
InvestorsHub NewsWire
Invictus MD Jumpstarts Revenue Stream With Sale of
First 120 kg of Flower to Canopy Growth Corporation; Signs
Definitive Agreement to Increase Ownership of AB Laboratories in
Ontario from 33.3% to 50%
Vancouver, BC -- January 26,
2018 -- InvestorsHub NewsWire -- INVICTUS MD STRATEGIES
CORP. ("Invictus MD" or the "Company") (TSXV:
IMH;
OTC: IVITF; FRA: 8IS1) is pleased to announce the sale
of its first 120 kg of dried flower from AB Laboratories Inc.
(AB Labs), the licensed production facility under
the Access to Cannabis for Medical Purposes Regulations
(“ACMPR”), near Hamilton to Canopy Growth
Corporation (TSX:WEED),
putting Invictus MD’s license holders on track for achieving 26,000
kg run-rate production capacity for 2018 with net capacity of
22,150 kilograms to Invictus MD.
Additionally, the Company is pleased to announce that it has signed
the definitive agreement to make its further strategic investment
in AB Labs, from its current 33.3 percent ownership interest to 50
percent.
AB Laboratories’ products will be used in Canopy Growth
Corporation’s curated CraftGrow line on Tweed Main Street’s online
store. Tweed Main Street features only high-quality cannabis by an
elite group of producers, and AB Labs is thrilled that consumers
will find its product as part of the Tweed Main Street’s carefully
curated selections.
“Patients routinely get in touch with AB Labs inquiring about our
high-quality product. Now, they can take advantage of Canopy
Growth’s Tweed Main Street to gain immediate and detailed
information about our artisan cannabis. The effort gives us
immediate access to the largest customer base in the rapidly
expanding medical cannabis market,” said Dan
Kriznic, Chairman and CEO of Invictus MD. “Our collaboration
with Canopy Growth demonstrates our commitment to making the sector
strong and helping to expose medical cannabis patients visiting
Tweed Main Street, to another high quality, unique brand.”
"On behalf of the Canopy Growth team, I want to congratulate the AB
Labs team for achieving this milestone," said Mark Zekulin,
president, Canopy Growth. "AB Labs is now the second CraftGrow
partner to successfully transfer cannabis products to be sold
through our Tweed Main Street e-commerce platform. We hope to have
AB Labs cannabis available to our customers this quarter and look
forward to many more successful transfers in the future."
The Company’s finalization of the definitive agreement to increase
investment in the licensed production facility AB Labs marks
another important milestone for Invictus MD as Canada moves
within six months of the expected full adult-use legalization of
cannabis. AB Labs received the amendment to sell dried
marijuana under the ACMPR (“Sales License”) earlier this month.
The terms of the definitive agreement include a direct cash
investment in AB Labs for $10 million to be used for the expansion
of AB Labs’ existing facility, acquisition of the land and building
at the existing facility from the landlord and for the acquisition
of an adjacent land and building including retrofitting costs
towards the existing building on the adjacent property (the
“Secondary Facility”), for a combined production
space of approximately 56,000 square feet. Invictus MD will make
available to AB Labs a $2 million line of credit in the event costs
exceed budget during the construction period.
Invictus MD also expects its 100% owned subsidiary Acreage Pharms
Ltd. to receive its sales license in the first quarter of 2018 as
it has already harvested multiple successful crops and product has
already been tested. The submission of another license application
to Health Canada by AB Ventures Ltd. (“AB Ventures”), and AB
Ventures’ development permit on the 100 acres of land for the
initial Phase 1 construction that is fully funded, signals another
key milestone as Invictus MD continues to build out significant
kilogram capacity for the expected domestic and international
demand.
“The increase in our ownership of AB Labs and the renovations of
the Secondary Facility that will provide a combined production
space at AB Labs and Acreage Pharms of approximately 95,000 square
feet, will dramatically advance our timeline for increasing our
expected annual run-rate production capacity at our facilities to
26,000 kg’s in 2018 and 76,000 kg’s in 2019 in time for the
adult-use market. Invictus MD’s funded capacity today is
approximately 20,600 kg’s making it one of the top licensed
producers in Canada” said Dan Kriznic, Chairman and CEO, of
Invictus MD. “Increasing our production capacity has been a
sharp focus of the Company. Our production will satisfy the
significant demand in Canada for high quality, standardized,
pesticide free product for the current medical cannabis market and
recreational market that is expected to begin mid 2018.”
About Invictus MD Strategies Corp.
Invictus MD Strategies Corp. is focused on two main verticals
within the Canadian cannabis sector, namely the Licensed
Producers under the ACMPR, being its 100% investment in Acreage
Pharms Ltd., located in West-Central Alberta, and 50% investment in
AB Laboratories Inc., located near Hamilton, Ontario which has both
its cultivation and sales license under ACMPR. Combined the two
licenses and an expected third license under AB Ventures are
expected to have an approximate annual run-rate production capacity
of 76,000 kg by 2019. In addition to ACMPR licenses the Company has
an 82.5% investment in Future Harvest Development Ltd. a Fertilizer
and Nutrients manufacturer based in Kelowna, British
Columbia.
For more information, please visit www.invictus-md.com.
On Behalf of the Board,
Dan Kriznic
Chairman & CEO
Larry Heinzlmeir
Vice President, Marketing & Communications
604-537-8676
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 AB Labs, AB Ventures and Acreage Pharms’
production facilities, the granting of regulatory approval and
anticipated timing of AB Labs reaching full production capacity,
the granting of a sales license under the ACMPR to AB Ventures and
Acreage Pharms, Acreage Pharms’ receipt of a sales license and
the success and timing of Acreage Pharms’ expansion plans, expected
sales of inventory and the completion of the increase in the
Company’s ownership of AB Labs pursuant to the definitive agreement
(the “Transaction”) 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 assumptions that AB Labs, AB Ventures and Acreage
Pharms will satisfy all conditions for, and receive, regulatory
approval to sell medical cannabis at their production facilities’
full capacity, AB Ventures will satisfy all conditions for and be
granted a license under the ACMPR and will receive a development
permit on the expected terms, AB Ventures is able to successfully
build a production facility, Acreage Pharms will satisfy all
conditions for and successfully obtain the anticipated sales
license and will successfully complete its expansion plans, the
anticipated sales of inventory will take place on the terms and
timing expected by management, all conditions to the closing of the
Transaction will be satisfied and the Transaction will complete on
the terms set out in the definitive agreement and that the
legalization of recreational use of cannabis in Canada will occur
as expected. 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 risk that AB Labs, AB
Ventures and Acreage Pharms will not receive regulatory approval to
sell medical cannabis at their production facilities for their full
production capacity or at all, that AB Labs, AB Ventures or Acreage
Pharms will not reach full production capacity, that AB Ventures
will not be granted a license under the ACMPR or will not receive a
development permit on the expected terms or at all, that AB
Ventures is not able to successfully build a production facility,
that Acreage Pharms is not able to obtain the anticipated sales
license when expected by management or at all or is not able to
successfully complete its expansion plans, that the anticipated
sales of inventory will not occur on the terms and timing expected
by management or at all, that the Transaction will not complete on
the expected terms or at all and that the legalization of
recreational use of cannabis in Canada will not occur at all or as
expected. 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. We seek safe
harbor.
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.
Email: connect@invictus-md.com
Website: invictus-md.com
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