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LOI's are just that. A letter of intent. When a LOI is announced it doesn't mean the deal is done. Invictus is not the only company I own that does not complete announced Loi's. One CEO I spoke to at one of my other investments said the LOI merely allows the two companies to talk and explore options. Once all the discussion is done either side may walk away. We cannot assume just because Invictus did not complete the LOIs they were all due Invictus walking away. In some cases it makes good sense to walk away. When they announced the GTEC LOI they were going to pay $100M to buy them. After doing all the DD and waiting a bit, GTEC was valued way lower in the market so Invictus walked away, which was the right move at the time. I would have been more upset had they paid $100M for a company that had mc of $50M just so they could say they fulfilled the LOI.
Anyway, I understand the frustration of the LOI's. Not closing on any of them does look bad and makes one wonder if they thought it through before announcing the LOI. If Invictus was the only company I own that did not close on their LOI's I'd be more concerned but I've seen lots of them not close, and in some cases the LOI is announced and never discussed again.
Keveton payouts
As of January 31, 2019, George E. Kveton, CEO was a party to an employment agreement with the Corporation (the
“Kveton Agreement”). The Kveton Agreement commenced on November 5, 2018 and has no fixed term. The Kveton
Agreement sets forth certain instances where payments and other obligations would arise on the termination of Mr. Kveton’s
employment with the Corporation. The Kveton Agreement provided that if Mr. Kveton’s employment with the Corporation
is terminated by the Corporation without cause, then Mr. Kveton would be entitled to receive 12 months’ notice of
termination or a payment equal to $450,000 plus his benefits, if any, for a 12 month period. The Kveton Agreement also
provided that if Mr. Kveton’s employment with the Corporation is terminated by the Corporation within six months of a
change of control of the Corporation or Mr. Kveton elected to terminate the Kveton Agreement by giving written notice to
the Corporation within 60 days of becoming aware of such change of control, then Mr. Kveton would be entitled to an
amount equal to 18 months’ notice or Salary in lieu of notice. In accordance with the terms of the Option Plan, if Mr.
Kveton’s employment is terminated without cause, all vested options are exercisable for a period of ninety days prior to
cancellation and unvested options are immediately cancelled. If Mr. Kveton elected to terminate the Kveton Agreement due
to a change of control all unvested options would be immediately vested and all vested options would be exercisable for a
period of ninety days prior to cancellation.
And another $550K spent....without knowing exactly is being done to deserve this payment
Pursuant to a Transition and Consulting Services Agreement dated November 5, 2018, Dan Kriznic, the Corporation’s
former CEO provides advice and such other duties related to transition, strategic planning, corporate structure, and
development of the Corporation as the CEO of the Corporation may reasonably require. In addition, Mr. Kriznic will provide
assistance and co-operation with respect to any outstanding or future litigation or disputes with respect to which his
assistance may be required. Mr. Kriznic was paid a one-time fee of $550,000 plus GST.
This is one of things that has always bothered me about the CEO compensation at Invictus. Dan K had the same provisions when he was CEO. Why is the bonus not based on revenue and profit? Having the bonus based on market cap gives the CEO every reason to use any nefarious tool to bring the mc up such as marketing, hype, inflated projections, promise of spin outs, etc. Should be based on revenue and profit. IMO, this kind of comp is one of the main reasons we saw all this garbage going on like spending $500K on a useless mailout.
During the year ended January 31, 2019 the Corporation had an Executive Employment Agreement with Trevor Dixon, the
current CEO and President of Acreage Pharms Ltd., dated April 21, 2017 (the "Dixon Agreement"). The Dixon Agreement
can be cancelled at anytime with sixty days written notice by either party. Under the terms of the Dixon Agreement, Mr.
Dixon will receive an annual salary of $240,000.00. Mr. Dixon is also entitled to receive an incentive fee, the amount of
the incentive fee and incentives to be awarded to Mr. Dixon will be determined by the Board, acting reasonably, with the
intention that, separate and apart from the incentive fee, Mr. Dixon will be eligible for a minimum annual short term
incentive (e.g. cash bonus) of 100% of the annual salary and a minimum annual long term incentive award (e.g. options) of
150% of the annual salary with the approval of the Board in such an amount as is determined in the Board’s discretion. Mr.
Dixon is also entitled to receive certain one-time fees if the Corporation reaches the following market capitalization
milestones:
? $200,000 if the Corporation’s market capitalization reaches $150 million for a minimum period of 20 consecutive
trading days;
? $200,000 if the Corporation’s market capitalization reaches $300 million for a minimum period of 20 consecutive
trading days;
? $300,000 if the Corporation’s market capitalization reaches $400 million for a minimum period of 20 consecutive
trading days;
? $400,000 if the Corporation’s market capitalization reaches $500 million for a minimum period of 20 consecutive
trading days;
? $500,000 if the Corporation’s market capitalization reaches $600 million for a minimum period of 20 consecutive
trading days; and
? $600,000 if the Corporation’s market capitalization reaches $700 million for a minimum period of 20 consecutive
trading days.
while we have all complained about Invictus not meeting their deadlines, others are not much better. this from GTEC on Oct 11, 2018....Invictus's retail strategy has been tied to this but out of their control when it gets done....
Kelowna, BC – October 11, 2018 – GTEC Holdings Ltd. (TSXV: GTEC; OTCPK: GGTTF) (“GTEC” or the “Company”) is pleased to provide the following updates on its retail operations.
Alberta – Cannabis Cowboy 25 Locations at Full Deployment
Cannabis Cowboy has currently received 10 development permits from their respective municipalities in Alberta, which include locations in Calgary, Red Deer, and Lethbridge. Permits are subject to final Provincial and Municipal licensing. Cannabis Cowboy expects to have 11 retail locations opened and operational in Q4 2018, with an additional 14 locations to be opened in Q1 2019. Over the coming weeks, GTEC will be working closely with Cannabis Cowboy and Invictus (TSXV: GENE; OTC: IVITF; FRA: 8IS1) on finalizing product supply, brand launches and retail grand openings.
fair enough. He's already been paid the 2.5M cash and the shares so might as well find the best way to utilize him. Not like they would just terminate the agreement at this point after paying out all those shares. I don't have a like or dis-like for him, just not sure how they can use him to their advantage because to date it does not seem like his front facing appearances have been of much help.
I'd really like to see wholesale changes to even small things like changing the company name (read lots of complaints about no one liking Invictus as the company name) and I really wish they would change the cdn ticker to something other than GENE. I think the whole GS thing has left a bad taste and the symbol is just a constant reminder. While GS may be able to help behind the scenes, I think the company should stop putting him out front, change the ticker and "rebrand" itself under new management.
I did listen to a call that Dan Anglin (CEO of Cana) did several weeks ago where he mentioned that the JV LOI with Invictus was still being looked at but because Invictus had also announced a JV LOI with GS for MoneyBag sodas that both sides were figuring out if Cana/Gene JV would proceed. Personally, I feel that none of LOIs announced have been all inspiring. most have not included any detailed information that would allow an investor to determine if the JV is good or not. We still know nothing about the MoneyBag sodas JV details...supposed to be announced within 60 days of PR which would put the data at June 23 I think. Either way, a market cap of 47.5M cdn for a company that reported assets of $155M is way oversold not to mention the sq ft coming online soon. While communication has improved, I wish Trevor would put out a CEO update outlined his goals for the company. As you have stated, are they just going to focus on build out and forget about all these JV's etc. Funny too that Invictus did not press release the Cana JV being terminated but Cana did.
seems like nothing is a good thing with this company. Continuing the downward trend..Volume drying up too so anyone wanting to sell has to keep dropping their price. This stock now has a serious trading issue regardless of what the fundamentals are doing. With still no bottom in sight, why buy it now. Was 47 cents just 5 trading days okay and now at 39.5 cdn. Every momentary uptick is a fake out and then back down we go.
looks like JV LOI with CANA has expired. This was noted in CANA press release today:
https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aCANA-2774307&symbol=CANA®ion=C
Further to its press release dated January 7, 2019, the Company announces the expiration of its previously announced letter of intent to create a joint venture with Invictus MD Strategies Corp. (TSXV: GENE; OTCQX: IVITF; FRA: 8IS1) and CBDistribution Company Ltd. The parties continue to explore mutually beneficial alternatives.
anyone see this new wording on the Acreage Pharms website regarding pricing:
Please note the new, lower prices. Our increased production capacity has reduced costs, and we take great pride in passing on these savings to our valued clients.
https://www.acreagepharms.ca/products.php
Update on Acreage Pharms Producti0n Output
https://ceo.ca/@nasdaq/update-on-acreage-pharms-ltd
by @nasdaq on 12 Jun 2019, 09:15
UPDATE ON ACREAGE PHARMS LTD.
? ? ? ? ?
Vancouver, British Columbia, June 12, 2019 (GLOBE NEWSWIRE) -- INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS2) Mr. Trevor Dixon, Chief Executive Officer of Invictus, is pleased to report that the Phase I and II facilities of the Company’s wholly owned subsidiary Acreage Pharms Ltd. (“Acreage Pharms”), comprising a total of 40,000 sq. ft of combined space, are now in full production and is commencing the third harvest cycle from their eleven flowering rooms. Phase II was licensed for production under Health Canada’s Access to Cannabis for Medical Purposes Regulations ("ACMPR") on August 31, 2018 and is currently harvesting four room harvests per month. Total production has now reached over 200 kg per month of dry bud and dry cannabis for Acreage Pharms' in-house CO2 critical gas extraction. Phase I and II are meeting the planned production of 2,400 kg per year. Acreage Pharms is averaging a price of $5.95 per gram sold of dry bud.
On Behalf of the Board
Trevor Dixon
Chief Executive Officer
Investor Relations 1-844-800-6086
E-Mail: connect@invictus-md.com
Interesting article about edibles/oils and how LPs are storing product rather than sell dried cannabis is market today due to higher margins expected on oils/edibles.
https://www.bnnbloomberg.ca/canada-s-shambolic-pot-market-will-soon-get-much-worse-1.1268844
Also wondering if Invictus would supply Poda with product to fill their pods. As per this comment from Poda on March 15th, they say they expect to have 3M pods per month that would need to be filled with product
"The initial production run for the entry-level Poda device is now well-advanced, and the Company is
currently constructing a custom-designed production line to produce the empty biodegradable Poda pods.
When the production line is complete, the Company anticipates that it will be capable of outputting over 3
million Poda pods per month, with monthly production capacities expected to steadily increase from that
point onwards. Poda has also been developing a small-scale semi-automated filling machine designed to
enable a single operator to fill up to 10,000 Poda pods per day. The Company anticipates that the modular
design will allow the filling machines to be installed directly inside regional production facilities, and
individual facilities will be able to install multiple machines side-by-side to increase daily filling capacities.
Barring any unforeseen delays, the Company anticipates that both the Poda pod production line and the
modular filling machines will be completed within the next 3 months, at which time the Company projects
that it will have an adequate opening inventory of Poda devices on hand. The Company is still considering
its optimal product launch strategy and is evaluating the available options, however, the exact timing and
location for the launch of Poda's products cannot be determined at this time."
more changes - new COO - AB Labs part owner...sensible move
ORIGINAL: INVICTUS ANNOUNCES EXECUTIVE APPOINTMENT
2019-06-05 09:00 ET - News Release
Vancouver, June 05, 2019 (GLOBE NEWSWIRE) --
Vancouver, BC, June 5, 2019 - INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS2) announced today that Mr. Marc Ripa has been appointed Chief Operating Officer (“COO”) of the Company.
Mr. Ripa is President and Director of AB Laboratories Inc. (“AB Labs”) and AB Ventures Inc. (“AB Ventures”). Mr. Ripa brings 35 years of successful business experience owning and operating in excess of ten successful North American corporations. Mr. Ripa has over 25 years of direct retail, wholesale, distribution and manufacturing of high quality commercial hydroponic equipment sold throughout the West Coast USA cannabis industry. Marc will continue to hold his current positions within AB Labs and AB Ventures.
Mr. Dixon, the Company’s Chief Executive Officer remarked “It is my pleasure to work with Mr. Ripa in his position as COO, Mr. Ripa's experience in the cannabis industry is exceptional, his 35 years as an entrepreneur is complementary to mine. Mr. Ripa's ability to grow and operate businesses will further strengthen the operations of Invictus and is a significant asset in the restructuring of the Company.
Currently, the Company has a 50% interest in AB Labs and a 24.99% interest in AB Ventures. Mr. Ripa holds the balance of the shares of AB Labs and AB Ventures and is a significant shareholder of the Company. Mr. Ripa will work closely with Mr. Dixon to continue to grow and further increase the Company's production and sales.
On Behalf of the Board
Trevor Dixon
Chief Executive Officer
lol. so true. that is definitely ironic. well, I guess i can cast my vote at the shareholder meeting if I want to see a change but with Brenda and Trevor owning almost 20M shares combined he may not be replaced if they still want him there
Personally I would also like to the a new BofD Chair, someone that clearly understands the board represents shareholders. Mr. Sparkes has been the Chair while all this downturn has been going on, while the communication has been very poor. Clean house would be good and a start over with all new directors I think would be best
interesting. Kathy Love, as some have pointed out is listed on the latest Invictus Press Releases and as some have said she is also Corporate Secretary for Cannamerica. Looks like she also Corporate Secretary for Kelso Technologies where Richard Lee, new director is CFO.
I agree. My concern now though is that investors/shareholders may be worried that the company is in a lot worse shape than thought based on the all the changes being announced, thereby justifying the downturn in share price. Like some others, I had thought part of the downturn in sp was manipulation but now wondering if it was simply leaked information that things were bad at the company. I definitely think we are better off today than the past six months and something tells me Mr. Dixon is not done yet with changes. The core aspects of the company have not changed. They have multiple HC licenses, expect approval to sell oil, continue to build out plants to grow more product, have Future Harvest which sells $3M/yr, Alberta just announced more retail stores so maybe that will help GTEC get going on their retail expansion and thereby help GENE, more strains being added to AB online store, possible jv still with Cannamerica and possible jv with MoneyBag Sodas and still seeking GMP compliance and have deal with German company
Big changes. Board changes. Sarah Hardy, Kevin Smith also gone
ORIGINAL: INVICTUS ANNOUNCES CHANGES TO BOARD
2019-06-04 09:00 ET - News Release
Vancouver, June 04, 2019 (GLOBE NEWSWIRE) --
Vancouver, BC, June 4, 2019 - INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS2) announced today that Mr. Richard Lee has been appointed to the Board of Directors as an independent Director. Mr. Aaron Bowden has submitted his resignation as a Director in order to devote more time to his other business interests. Mr. Bowden will continue to serve the Company as an advisor. Mr. Bowden was appointed to the Board of Directors on August 19, 2016 and served as Chair of the Audit Committee.
Mr. Trevor Dixon, the Company’s Chief Executive Officer said, “He would like to take this opportunity to thank Mr. Bowden for his years of service as Director and Chairman of the Audit Committee. Mr. Bowden has worked tirelessly and it has been my pleasure to work with Mr. Bowden. I wish Mr. Bowden and his family all the best in their future endeavors.”
Mr. Lee is a graduate of the University of British Columbia with a Bachelor’s degree in Commerce. In addition, he is a Chartered Professional Accountant, Certified Management Accountant having obtained his designation in 1991. Mr. Lee has spent more than 27 years working for public accounting firms or for companies that trade on recognized stock exchanges. He has gained a wealth of experience in corporate finance, acquisitions and accounting while working with and for listed public companies trading in Canada as well as registered with the SEC in the United States. Mr. Lee serves as CFO of Kelso Technologies Inc., a company listed on the TSX and NYSE Markets Exchange, CFO and a Director of SIQ Mountain Industries Inc., a company listed on the TSXV, as well as CFO of Happy Creek Minerals Inc., a company listed on the TSXV.
“I am pleased to have Mr. Lee join the Board. He brings a wealth of financial experience that will help further strengthen Invictus’ leadership team. I look forward to working with Mr. Lee to move the Company forward with a focus on earnings growth and expanding the Company’s presence in the cannabis space,” said Mr. Dixon.
The Company is also announcing the departures of Jessica Martin, Investor Relations, Sarah Hardy, VP Medical Sales and Kevin Smith, VP Recreational sales. Invictus is streamlining and continuing to improve the Company’s communication facilities with the Company’s shareholders and clients, including improvements to the website and investor relations services.
On Behalf of the Board
Trevor Dixon
Chief Executive Officer
Yup...as this chart shows...see Tier 3 chart and where Invictus shows up. Worst performer for all Tier 3 companies. Lots of work to do here
insert-text-here
Found this info in the just posted Annual Information Form on Sedar (lots of historical info in this document and should set the record straight on all that has happened). What's interesting is this part in the document about AP and AB Labs dried flower UP TO APRIL 30, 2019
Acreage Pharms
For the first quarter ended April 30, 2019, the Acreage Pharms facility has had a total yield of 349,677 grams of dried cannabis (250,949 grams flower and 98,728 grams extractable trim). There are 516,440 grams of dried cannabis in its vault, comprised of 128,370 grams of dried flower awaiting release for sale and 388,070 grams extractable trim held for oil production and sale.
AB Labs
As at April 30, 2019, the AB Labs facility is operating at full capacity with a total yield of 526,591 grams. There are 68,598 grams of dried cannabis in its vault, comprised of 34,615 grams of dried
flower available for sale, 32,018 grams held for future extract production, and 1,965 grams held as
retention samples.
Dixon taking over as CEO. Kveton is out
https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aGENE-2768768&symbol=GENE®ion=C
I agree about the Dixon's and CFO. The Dixon's have a lot to lose. They sold their business for 20M shares (10M each) at a deemed price of $1.50 and I'm sure with the expectation that the value would go up not down. Their share is now worth $8M(4M each) from the $30M. Based on my conversations with the CFO, she is the real deal and has listened to what I had to say.
Zack's report - maintains $11 cdn target price
https://finance.yahoo.com/news/cvalf-aquaguard-more-doubles-u-154500585.html?.tsrc=applewf
I think Management has started to get the message, at least on some fronts. A very small thing I noticed is that they finally added the link to the OCS site on their own website. This is something I complained to management about. Seems like a small thing, but if you direct people to your corporate website a great way to get them to buy your product is to facilitate the process of getting them over to the OCS to buy the product. It's a small detail but for me there are a lot of small details that they have been missing that all add up.
I think one of the main issues for Invictus is that they rely on GTEC for the retail store rollout. GTEC needs the Alberta regulators to allow for more stores to rollout, which they just did. In Ontario, very few stores have opened and I still think many people do not want to use their credit cards online to buy cannabis so I think when more retail stores open, then sales will improve. Invictus also needs to get more strains on the OCS site. In AB, they have quite a few but in ON they only have 2.
Also, from what I read BC has done a terrible job rolling out legal cannabis and the sales in the overall industry are very low compared to AB, ON and QC and since BC is one of the provinces that Invictus has an agreement with, I don't think they are supplying too much at this point
Management has dug a deep hole. They have lost investor/shareholder confidence but can turn it around imo, but will take time. I think they got a bit arrogant and have now seen what happens when you don't deliver
BTW, Annual meeting is on July 25 (check SEDAR for official press release). This would be your chance to voice your opinion.
I also agree that many other mj companies have reported numbers that are no better and sometimes worse than Invictus and are not getting punished to this level. Personally, the numbers came in right where i thought. A huge loss was not unexpected. We all knew that the shares issued to GS would have to be reported at some point and that the cost of branding and IR would also show up. We also knew they had been issuing lots of options that would get reported on the financials as well. I was a bit disappointed that sales were not higher but I think that will change. If Q1 report in June is really bad then I think there is more to be concerned about but until they get the additional 130K sq feet I think revenues will still be on the lower end. Not to forget thought that they will have oils coming online, possibly CBD deal and Soda drinks which will all add to revenue
Lastly, they need to execute to plan and be more transparent. This I am hoping is a message management has gotten
From the last financials: "On January 18, 2019, Canandia received its B2B sales license for its Delta location (the “Delta Facility”) from Health
Canada pursuant to the Cannabis Act and Cannabis Regulations. The newly awarded license allows for the sale of final packaged flower, plants and seeds to Licensed Producers." So they can sell B2B not B2C
To me this means they can sell the dried packaged flower grown in their already built 4000 sq ft facility in Delta, thus the need to hire the master grower which joined recently
The corporate presentation had said they had planned on building out more sq footage but the financials show only 4000 that is already built as "planned" for 2019. I would think for the Mission facility they would need HC approval but maybe I am wrong.
As per the financials:
"Canandia has two properties: (1) a 4,000 square foot licensed cultivation facility located in Delta, British Columbia (“Delta Facility”), and (2) an additional property awaiting construction of a 50,000 square foot purpose-built indoor facility located in Mission, British Columbia (“Mission Location”)."
Invictus is on the hook for $10M to fund further buildouts, which is $10M they don't have right now so I think that is why they changed their square footage
IMO, they totally screwed this up with the lack of communication and the NASDAQ listing with the associated share split. I think they were going to use that to then do a financing and fund further expansion. When the share price plummetted, they have now been forced to sit tight on further expansion or do a seriously bad financing at these levels, which I really hope they are smart enough not to do, otherwise we will see much lower price than 44 cents IMO
high is $2.34 cdn. Low is today's price of 44 cents. Long way down from the high. pretty sad situation
Agreed. Kveton has publicly stated they are not seeking to be the biggest based on sq. footage. I think they are trying to diversify a bit. Seems to me they want to sell dried flower and oils and get into CDB and drinks(with GS). I think Oils have a significantly higher mark up than dried but until we get license from HC can't sell any.
the market simply does not like this company right now. Invictus is not the first or only MJ company to announce a huge loss for the year on small revenue numbers and given the stock is already down a huge amount before this announcement I don't see why it continues to get punished. They have healthy working capital and more cash than some other mj companies
Perhaps the overhang on the sp is fears of a dilutive financing. I'm not sure who would want to do a pp with them right now given the last one was at $2 and look where we are.
Also, read today that Alberta has lifted moratorium on retail licenses and will now issue 5 retails licenses a week.
well, I hope fiscal 2020 is better. Total revenue for 2019 was $4.6M. $3M of that was fertilizer sales and $1.6M was dried flower (page 36 of the quarterly results document). I think next quarterly report is end of June so that should give a better picture of dried flower sales. Plus, they do have plans for oils going forward.
IMO they either overpaid for the assets or have not done a good job at creating value from them. For example, according to financial report, Fair value paid JUST for Acreage was $45M and total market cap today for GENE is only $60M.
The other thing that I noticed was that the President of AB Labs (other 50% owner) "retains power and control to manage operations without restriction." How can Invictus management manage the overall plan if they don't control aspects of the business?
Also, did anyone notice that GS is being paid a $200K per year for 5 years via a Management Services Agreement for promotional and marketing services. This is on top of the $2.5M US cash and all the shares he got for selling Gene-Etics to Invictus.
looks to me like they are scaling back their buildout. Quarterly report only shows 188,600 sq feet planned for Fall 2019 but investor deck had shown 539K sq ft (they had additional planned build for Canandia which is not mentioned in financial report). Also noticed that Investor Deck is no longer showing on company website
.
full year financials....
For the year ended January 31, 2019, the Company had a net loss from continuing operations of $31,785,471 (2018:
$19,043,996).
The significant variances in net loss between the comparative period include:
• Revenue of $4,692,773 (2018: $2,364,423) primarily due to sales of dried cannabis to provincial liquor and
cannabis boards, following legalization of adult-use cannabis on October 17, 2018.
• Gross margin of 32% (2018: 70%) primarily due to (1) the ramp-up of operations and increased head count
associated with the build-out of cannabis cultivation facilities, and (2) the unrealized gain on changes in fair
value of biological assets due to biological transformation of cannabis plants in prior year not being offset by
Invictus MD Strategies Corp.
For the three months and year ended January 31, 2019
Management’s Discussion and Analysis
10
fair value changes included in inventory sold. Acreage Pharms Phase I did not receive its sales license until
May 18, 2018.
• Sales and marketing of $14,448,050 (2018: $2,745,855) primarily due to $6,983,645 expensed to sales and
marketing as part of the Gene-Etics acquisition, increased sales and marketing activities associated with the
development and launch of new recreational and medical cannabis brands: Dukes, Sterling & Hunt, and T2C,
and overall ramp-up of activities following legalization of adult-use cannabis in Canada.
• General and administrative of $11,076,256 (2018: $5,280,698) primarily due to (1) the ramp-up of operations
and increased head count associated with the build-out of cannabis cultivation facilities, (2) significant
professional fees were incurred for the activities outlined in the Business Developments section above, and
(3) $550,000 in common shares issued for settlement costs.
• Share-based compensation of $3,159,277 (2018: $7,419,953) primarily due to grants of incentive stock
options to certain directors, officers, employees and consultants of the Company.
• Acquisition costs of $915,594 (2018: $3,399,830) primarily due to the prior year acquisition of Acreage
Pharms, offset by the current year acquisitions of Leaf Wise and Canandia.
• Depreciation and amortization of $3,699,376 (2018: $1,855,755) primarily due to amortization of the cannabis
cultivation licenses over the term of the lease properties, amortization on Gene-Etics IP, and depreciation on
property, plant and equipment.
• Equity loss on investments of $795,867 (2018: $594,998) primarily due to the equity pickup associated with
AB Labs and AB Ventures. The loss is primarily due to the amortization of the cultivation license in AB Labs.
Q4 financials on Sedar
For the three months ended January 31, 2019, the Company had a net loss from continuing operations of $14,276,013
(2018: $6,207,664).
The significant variances in net loss between the comparative periods include:
• Revenue of $1,185,307 (2018: $682,218) primarily due to sales of dried cannabis to provincial liquor and
cannabis boards, following legalization of adult-use cannabis on October 17, 2018.
• Gross margin of 22% (2018: 38%) primarily due to (1) the ramp-up of operations and increased head count
associated with the build-out of cannabis cultivation facilities, and (2) the unrealized gain on changes in fair
value of biological assets due to biological transformation of cannabis plants in prior year not being offset by
fair value changes included in inventory sold. Acreage Pharms Phase I did not receive its sales license until
May 18, 2018.
• Sales and marketing of $4,922,324 (2018: $666,271) primarily due to increased sales and marketing activities
associated with the development and launch of new recreational and medical cannabis brands: Dukes,
Sterling & Hunt, and T2C, and overall ramp-up of activities following legalization of adult-use cannabis in
Canada.
• General and administrative of $2,729,882 (2018: $2,026,964) primarily due to (1) the ramp-up of operations
and increased head count associated with the build-out of cannabis cultivation facilities, and (2) the
acquisition of Leaf Wise and Canandia.
• Share-based compensation of $1,238,069 (2018: $1,732,868) primarily due to grants of incentive stock
options to certain directors, officers, employees and consultants of the Company.
• Acquisition costs of $731,518 (2018: nil) primarily due to the current year acquisition of Leaf Wise and
Canandia.
• Depreciation and amortization of $1,040,107 (2018: $1,622,997) primarily due to amortization of the cannabis
cultivation licenses over the term of the lease properties, amortization on Gene-Etics IP, and depreciation on
property, plant and equipment.
• Equity loss (income) on investments of $207,087 (2018: $562,195) primarily due to the equity pickup
associated with AB Labs and AB Ventures. The loss is primarily due to the amortization of the cultivation
license in AB Labs.
Does anyone know if an person who is a "special advisor to the CEO" is considered an insider? Would Dan Kriznic still be considered an insider which means he would need to report any selling of shares he may have done? I would think he is an insider but not sure
Personally, I don't think the company is a scam, but rather, they have not executed well or to expectations (expectations that they set via the wording in their press releases over the years). PODA is a very good example of this. Three times they released an NR saying the product was ready to go and would be released and in all three cases, the product was not released. Another example is saying Acreage P3 would be done by Jan 2019 (this was stated as late as Dec 2018) and then to turnaround and say it will be Fall 2019. Things change, regulators delay things, that is understandable. What is not understandable is why the company does not tell shareholders what is going on, why there was a delay, what's being done about it, etc.
As for LOI's, I have learned over the years press releasing them really doesn't mean much. They simply allow two companies to have discussions. After the discussions they may decide there is nothing there. I used to think LOI meant all the discussions had already taken place and just the final work is left but I don't think that is true. So, for me, LOIs always need to be taken with a grain of salt. I've talked to CEOs of other companies and they have told me they've have many LOIs that never came to fruition.
They definitely need better/more transparency. It seems that they make things more complicated than needed. For example, they had signed Tycona Media to a 12 month IR contract, then 3 months later signed Darmwin to do the same. They never confirmed that Tycona was out and Darwin was in so shareholder are left wondering if they now have 2 IR firms or one. Then Wills Commuication came into the picture so even further confused things. It's this kind of silliness that I think is a big part of the issue with the share price
I am trying to view this long term. If they continue to build out their plants, get into oils, etc, I think they will turn it around. My biggest worry right now is that they do a very dilutive financing with cheap warrants. It would not surprise that the sp has been driven down to these levels to allow for cheap financing with loads of warrants. Just a guess though
not sure but I tried emailing these two email contacts shown on their website and both were returned as non-deliverable
http://www.deutschemedizinalcannabis.de/en/contact.html
Please send general requests to: info@dmc-pharma.com
Press inquiries to: press@dmc-pharma.com
This is one thing I can't figure out with Invictus. So many of their partners seem to be ghost like. For example, has anyone ever found any info on Darwin Productions Inc that they are paying $25K a month? Very little information on the German company either. Can't find a whole lot about AB Labs. They have an unnamed Marketing firm they are using(and paying $50K/month) so impossible to find out anything about that company. Also could not find much about CBDistribution (third company involved in the Cannamerica JV). I've never had such a hard time locating information about so many companies with any of my other investments. Also, getting no replies when I email the contact for Canandia.
speaking of the marketing company. I noticed there was no press release in early May about issuance of stock for services. For Feb, march and April they issued a PR in first week of that month. Does this mean they are no longer using this marketing firm and paying the $50K/month or just late on reporting it?
Hoping for a corporate update this week along with financials
I agree. I have rarely seen a company's stock fall every day for months. While they have not communicated well and the reverse split hurt it seems like something else is going on. Relentless selling all the way down. Only two green trading days in the whole month of May and those 2 days it was up half a cent (cdn) and 1 cent (cdn). April only had 6 green trading days. So, since beginning of April there have been 8 up days. Meanwhile, other mj stocks are way up. the shares are being severely punished. The worst of is there is no bottom so hard for to get a lot of new investors to jump in and help push price up
Canandia getting up and running....hired a master grower in April. found this on linkedin
Trevor McLean
Master Grower & Head Of Security
Company NameInvictus MD Strategies Corp.
Dates EmployedApr 2019 – Present
Employment Duration2 mos
Locationdelta bc
Hired as the Master Grower for Canandia which is a division of Invictus - MD.
I have to agree. He's been on the Board for years so he must have agreed with it. Even if he didn't he is now the CEO and should take full responsibility. That statement in the PR is concerning imo. It gives insight into the leadership qualities he has. Not to mention, the share price has been on a downward trend for months and the Nasdaq listing was announced in Jan so why did it take so long to reverse course. Glad they changed their minds but PR wording was very weak
i should restate. i don't think these are new options but rather options he already had. According to Sedi.com he was issued 100K plus 300K options some time ago so new entry simply looks like a balance of 400K. Options he has are priced in 1.80-2.00 range.
this will help soothe his pain. 400,000 options issued to him. Interesting how they didn't add this to press release like they did with other press releases
https://ceo.ca/gene