For those who are not familiar with Invictus MD Strategies Corp., it is focused on three main verticals within the burgeoning Canadian cannabis sector: Licensed Producers under the Access to Cannabis for Medical Purposes Regulations (ACMPR) located in both Alberta and Ontario, including Acreage Pharms Ltd. and AB Laboratories Inc.; fertilizer and nutrients through Future Harvest Development Ltd.; and Cannabis Data and Delivery, with its wholly owned subsidiary Poda Technologies Ltd. Invictus MD targets small and mid-size companies with proven brands, strong customer focus, and significant growth potential. Invictus directs the strategy towards profitability and growth for each of their portfolio companies. They assist the companies with business process integration and by structuring and deploying proper capital to support sustained growth.
In our last review of Invictus MD Strategies Corp we outlined the pending bought deal private placement (the “Offering”), with Canaccord Genuity Corp., Eventus Capital Corp., Echelon Wealth Partners Inc., GMP Securities L.P. and PI Financial Corp. On May 24, 2017 the Company announced the closing of the private placement for aggregate gross proceeds of $25,008,750. Net proceeds from the Offering will be used for expansion plans for the Company’s assets and for general working capital purposes. As compensation, the Underwriters received a commission of 5% of the gross proceeds and a corporate finance fee of 5% of the gross proceeds.
On May 29, 2017, Invictus MD today unveiled their new responsive website, invictus-md.com. The new site features a more vibrant, attractive and compelling design that showcases Invictus MD’s unique personality. Larry Heinzlmeir, Vice President of Marketing and Communication commented:
“We also wanted to amplify the value that we deliver to our investors at large, both verbally and visually–to better communicate to all of our audiences. Today’s launch marks the beginning of a new era. It’s fresher, stronger, and more modern. It represents the optimism we all feel about how the future of the cannabis sector can contribute to society. Our new verbal and visual identity signifies that we’re transforming as an organization.”
Invictus MD Strategies Corp announced on June 23, 2017 its inclusion in the Horizon Medical Marijuana Life Sciences ETF (TSX:HMMJ) (“HMMJ ETF”). HMMJ ETF is the first ETF to offer direct exposure to North American-listed stocks that operate in the legal medical cannabis industry. Horizon Medical Marijuana Life Sciences offers investors direct exposure to North American-listed stocks that are involved with biopharmaceuticals, medical manufacturing, distribution, bio-products, and other businesses ancillary to the marijuana industry. Invictus MD joins the 19 other constituents. Only stocks that meet minimum asset and liquidity thresholds are qualified for inclusion in the index, and no single stock may exceed 10% of the weight of the Index when rebalanced.
Invictus MD Strategies Corp’s 33% owned AB Labs announced on July 13, 2017 that has completed its first harvest, and anticipates a monthly harvest moving forward. These activities should begin generating significant revenue for the company moving into the second half of the year, which will scale up as the company increases production capacity over time. Management anticipates about 250 kilograms of production in 2017 before scaling up to 1,000 kilograms in future years.
AB Ventures — a subsidiary formed to develop a second licensed expansion facility in Hamilton, Ontario — is forging ahead with planning its Phase I expansion. The initial fully-funded $5.5 million expansion will be a 21,000-square foot purpose built facility capable of producing 3,000 kilograms per year. Management plans on completing this initial phase by the end of the year with plans to build an additional 21,000 square foot building envelope.
Acreage Pharms received a development permit for Phase II and has broken ground for the 27,800-square foot purpose built, multiple room production facility. The contracts and supplies necessary to complete the project have been scheduled and the company is prepared to invest $6 million toward the cost of constructing the production facility. The Phase III expansion will be a 76,750-square foot facility capable of producing 9,210 kilograms per year.