Building a vertically integrated, horizontally
diverse cannabis company
Vancouver, BC. -- September 5, 2018 --
InvestorsHub NewsWire -- 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. It’s 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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