Invictus MD's Chairman Provides March in Review
06 April 2017 - 4:02AM
InvestorsHub NewsWire
VANCOUVER, BC -- April 5, 2017 -- InvestorsHub NewsWire --
INVICTUS MD STRATEGIES CORP. (TSXV:IMH)(OTCPK:IVITF) ("Invictus MD" or
the "Company"), Canada's Cannabis Company, is pleased to provide a
month in review.
March was a transformational time for Invictus MD as it worked
to expand and solidify its cultivation portfolio with expansion
plan forecasts of 50,000 kilograms of high quality cannabis
production by 2020.
CBC News learned that
marijuana could be legal in Canada by July 1, 2018 and that the
legislation will be announced during the week of April 10, and will
broadly follow the recommendation of a federally appointed task
force that was chaired by former liberal Justice Minister Anne
McLellan. CBC News further reported that the federal government
would be in charge of making sure the country's marijuana supply is
safe and secure, and Ottawa will license producers.
It's reported that
Canada's cannabis industry could reach $22.6 billion over the
coming years, according to Deloitte, with a retail market worth up
to $8.7 billion. With only 41 producers licensed by Health Canada
thus far, there's a significant market opportunity for Invictus MD
to capitalize on this growth over time. The Company has focused on
building its production profile and during March, many significant
milestones were achieved. Some of those highlights are as
follows:
- On March 2nd the company announced that it had
closed its previously announced bought deal private placement with
Canaccord Genuity Corp. and Eventus Capital Corp., including a
portion of the over-allotment option, for aggregate gross proceeds
of $16,218,065. A total of 9,829,130 units, including those
pursuant to the exercise of the over-allotment option, were issued
at a price of $1.65 per Unit.
- On March 14th the Company completed its final
commitment with a cash transaction of CAD$2,000,000 to acquire
33.33% of AB Laboratories Inc. ("AB Labs"), a Licensed Producer
under the Access to Cannabis for Medical Purposes Regulations
("ACMPR") which maintains a 16,000 square foot facility located in
Hamilton, Ontario. Invictus MD has the right of first refusal to
arrange any initial public offering, reverse take-over or other
going public transaction of AB Labs.
- AB Labs had successfully conducted test crops
and is currently operating at half capacity, with full production
capacity scheduled by the end of May 2017. They have also acquired
a number of different strains and are negotiating numerous others
for R & D purposes. AB Labs has already received a number of
direct inquiries from patients, which underscores the continuously
growing demand.
- AB Ventures Inc.'s ("AB Ventures"), a newly
incorporated company formed to develop a
second licensed expansion facility through it's common ownership
with AB Labs, 100-acre acquisition is scheduled to close on May 1,
2017, and once licensed under the ACMPR, will be used for future
cannabis cultivation. Invictus MD made a commitment to invest $5.5
million,
which was in addition to the $2 million already funded for the land
acquisition plus working capital, and will provide Invictus MD with
a 33.33% interest in AB Ventures. Funds will be used for the costs
of licensing approval under the ACMPR, and constructing the initial
42,000 square foot cultivation facilities,
with plans to
construct an additional five production facilities on the new land
totalling 100,000 square feet. In
preparation for a fully compliant application, AB Ventures will be
using AB Labs respective persons in charge that have already been
cleared by Health Canada, reducing the amount of time to get a
secondary license, as security clearance is a lengthy process under
the ACMPR approval process. With licensing in place as expected,
production at AB Ventures is anticipated to start as early as
December 2017.
- Considering the magnitude of AB Ventures' land
acquisition and future production facilities, and assuming AB
Ventures obtains a license to produce the quantity forecasted for
the proposed facility, the combined production capacity of both AB
Labs and AB Ventures is expected to exceed 25,000 kilograms in
2020.
- Invictus MD closed the definitive option
agreement to acquire 100% interest in OptionCo., and on March 30,
2017 announced that OptionCo had received its license to cultivate
under the Access to Cannabis for Medical Purposes Regulations
("ACMPR") as Acreage Pharms Ltd. ("Acreage Pharms"), who has
constructed a 6,800 square foot production facility with an
expansion plan floor plate of 30,000 square feet, and the option to
add a 20,000 square foot mezzanine that sits on 150 acres of land
in Edson, Alberta. Alberta has low cost of production as a result
of low energy and water costs. This large land package of up to 3
million square feet of buildable property has a footprint larger
than 60 football fields, and provides the capability to construct
facilities to meet the demand that the coming adult recreational
marijuana use will create. Acreage Pharms also has plans to produce
extracted or oil based products oils are rapidly gaining market
share in the marijuana sector. By 2020 Acreage Pharms anticipates
production to exceed 25,000 kilograms of high quality, low cost
cannabis.
- On March 30, 2017 Invictus MD, Canada's Cannabis
Company, announced that its common shares would be listed on the
TSX Venture Exchange ("TSXV") commencing at the open of trading on
March 31, 2017; the Company's trading symbol "IMH"
will remain the same. Invictus MD's move from the CSE to the TSXV
follows a year of significant achievements.
"As one of the few
cannabis producing companies in North America listed on a major
exchange such as the TSXV, that move will enable us to engage a
wider investor audience," said Dan Kriznic, Chairman & CEO, Invictus MD.
"We are strongly focused on building our shareholder value.
With 250 acres
of cultivation space that stretches from Alberta to Ontario,
allowing for purpose built production facilities rather than
retrofitting existing buildings, we now have the largest land
package in Canada for building cultivation facilities as demand
increases and
we will continue the disciplined but agile execution of our
business strategy," added Kriznic.
About Invictus
MD Strategies Corp.
Invictus MD Strategies Corp. is focused on three main verticals
within the burgeoning Canadian cannabis sector: Licensed Producers
under the ACMPR including an investment in a fully licensed
facility, AB Laboratories Inc. as well as the option to now acquire
100% of Acreage Pharms Ltd.; Fertilizer and Nutrients through
Future Harvest Development Ltd.; and Cannabis Data and Delivery,
with its wholly owned subsidiary Poda Technologies Ltd.
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, assumptions or expectations of future
performance, including the timing and completion of the definitive
agreement with Acreage Pharms, the proposed exercise of the Option
and acquisition of Acreage Pharms, the potential production
capacity of the Property and Acreage Pharms's expectations to
receive a a cultivation license under the ACMPR 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 the Company will be
satisfied with its due diligence on Acreage Pharms, that the
Company will obtain stock exchange and all other applicable
regulatory approvals of the proposed Option, that the Company will
raise sufficient funds to exercise the Option, that Acreage Pharms
will abide by and pass all regulations and inspections required
under the ACMPR and be issued a cultivation license and that Health
Canada will approve the required facilities to meet the anticipated
production capacity of the Property. 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 the proposed exercise of the
Option may not occur as planned; the timing and receipt of
requisite approvals and failure of the Company to raise sufficient
funds to exercise the Option; Acreage Pharms will not abide by and
pass all regulations and inspections required to be issued a
cultivation license under the ACMPR and Health Canada will not
approve the required facilities to meet the anticipated production
capacity of the Property. 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.
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