Invictus MD announces binding LOI to acquire 100% of a Late Stage Applicant under Health Canada’s ACMPR
On February 7, 2017, Posted by Administrator , In Investor Relations, With Comments Off on Invictus MD announces binding LOI to acquire 100% of a Late Stage Applicant under Health Canada’s ACMPR
VANCOUVER, BC, February 7, 2017 – INVICTUS MD STRATEGIES CORP. (“Invictus MD” or the “Company”) (CSE: IMH; OTC: IVITF; FRA: 8IS) is pleased to announce that on February 6, 2017 it had entered into a binding letter of intent (“LOI”) for an option to acquire 100% (the “Option”) of the outstanding shares of a Late Stage Applicant (the “OptionCo”) under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) from its current shareholders (the “Vendors”). In early January 2017, OptionCo had its Pre-license inspection from Health Canada and expects to receive a license to cultivate under the ACMPR in short order.
OptionCo has built 60,000 square feet of secured perimeter for its current production facility located on 150 acres (the “Property”), which is expected to have production capacity of up to 6,000 kg per annum. OptionCo has already submitted plans for additional buildings on the Property including a 30,000 square foot facility. Assuming OptionCo receives the requisite regulatory approval to cultivate, OptionCo has future expansion plans on the 150 acre Property to establish itself as a leader in the Canadian cannabis industry.
The Option will be exercisable at the sole option of Invictus MD within 30 days after OptionCo receives its license to cultivate under the ACMPR. The exercise price of the Option will be payable as follows: (i) cash payment of $4 million CDN to the Vendors; (ii) issuing to the Vendors within 10 business days of exercising the Option, 21 million common shares of Invictus MD; and (iii) issuing to the Vendors 3 million warrants with an exercise price of $1.50 per warrant, of which: 1 million warrants will expire in 6 months following the date the Option is exercised; 1 million warrants will expire in 12 months following the date the Option is exercised, and 1 million warrants will expire in 18 months following the date the Option is exercised.
Subject to completion of satisfactory due diligence, Invictus MD intends to enter into a definitive option agreement on or before February 24, 2017.
“Once the option to acquire a 100% interest in OptionCo is exercised, along with the previously acquired interest in AB Laboratories, a licensed producer under the ACMPR, Invictus MD will have significant land holdings for cannabis cultivation in Canada to meet the significant demand. From day one, Invictus MD has viewed acquiring production capacity under the ACMPR as a key driver to increasing shareholder value”, said Dan Kriznic, Chairman and CEO of Invictus MD. According to a recent report from the consulting firm Deloitte “Recreational Marijuana – Insights and Opportunities”, the Canadian retail cannabis market is projected to be between $4.9 billion and $8.7 billion annually. In that same report, Deloitte further estimates that satisfying the recreational cannabis market will mean producing 600,000 kilograms of marijuana annually – far more than the existing licensed producers under the ACMPR grow for medicinal purposes.
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.; 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
604-368-6437
Larry Heinzlmeir
Vice President, Marketing & Communications
604-537-8676
