Excerpted Remarks from the CEO of Invictus MD
VANCOUVER , Sept. 5, 2018 /CNW/ –
“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 .
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.”
“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 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, located in Peers, Alberta , is rapidly growing. Its 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.
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.”
“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.
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.
- The system does not use potentially flammable or explosive petroleum-based solvents.
- Carbon-Neutral and Environmentally Friendly. The system does not emit carbon.
- 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.”
“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 (WEED.TO) 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.”
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.
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.
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.”
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