Invictus Completes Acquisition of Canandia in British Columbia, its Third Licensed Cultivation Facility Under the Cannabis Act & Cannabis Regulations
VANCOUVER, Nov. 16, 2018 /PRNewswire/ – INVICTUS MD STRATEGIES CORP. (“Invictus” or the “Company”) (TSXV: GENE; OTCQX: IVITF; FRA: 8IS1) is pleased to announce that it has successfully exercised its option to acquire 100% (the “Option”) of the outstanding shares of 0989561 B.C. Ltd. (“Canandia”) from its current shareholders (see press releases dated: May 16, 2018, July 18, 2018 and October 15, 2018, for more details).
Canandia features two properties located in Delta (the “Delta Facility”) and Mission (the “Mission Location”), British Columbia. The Delta Facility includes a cultivation, production and research facility, recently licensed under the Cannabis Act and Cannabis Regulations. The Mission Location includes 32 acres of buildable land, expandable up to 1 million square feet of production capacity under one Cannabis Act and Cannabis Regulations license. The Mission Location taps into wholesale energy costs with 38 MG Watt service at the property line, and access to an ample water supply from underground aquifers, making it a strategically attractive and cost competitive addition to Invictus’ current cultivation footprint. The Mission Location is featured in this video.
The acquisition of Canandia represents the Company’s third cultivation facility licensed by Health Canada under the Cannabis Act and Cannabis Regulations. The Company is headquartered in British Columbia and the acquisition is a natural fit for Invictus. Invictus’ production portfolio now includes licensed cannabis operations in the provinces of British Columbia, Alberta and Ontario, which is key to the Company’s plan to scale production to meet domestic and international demand for premium grade cannabis.
We are continuing to expand our cultivation footprint to strengthen our ability to control a steady supply of cannabis to medical and recreational markets, both at home and abroad. Each of our three purpose-built licensed facilities are designed with separate environmentally-controlled grow rooms to allow for maximum flexibility as we adapt our strains and product offerings to meet the needs of recreational consumers and medical patients alike, over the long-term.
George Kveton, CEO of Invictus
“After careful market consideration, we decided that combining Canandia’s current and planned production capacity with the highly qualified management team and financial might of Invictus will result in a sum greater than its parts. Together we expect to expeditiously implement our staged growth plan so as to bring high quality products to our adult consumers,” said Alon Amit CEO, Canandia.
With a shortage of supply in the market, Invictus remains focused on scaling production to address demand with up to 200,000 square feet of cultivation capacity expected to come online in the first quarter of 2019. Timing remains contingent on obtaining requisite Health Canada licensing and approvals.
The exercise price of the Option (the “Exercise Price”) was as follows:
a) $2.4 million in common shares of the Company (the “First Consideration Common Shares”) at $1.32 per common share. The First Consideration Common Shares will be subject to a 4 month hold period;
b) $10 million in common shares of the Company (the “Second Consideration Common Shares”) at $1.65 per common share with the following release schedule:
a. 25% of the Second Consideration Common Shares on the closing; and
b. 25% of the Second Consideration Common Shares every 4 months thereafter.
c) $10 million investment (the “Investment”) in cash into Canandia to be used for expansion of the Mission Location and working capital purposes. The Investment will be paid into Canandia over time on an as-needed basis; and
d) $7 million in common shares of the Company issued to the Vendors on the date that is within 10 business days of the Mission Location receiving its cultivation license under the Cannabis Act and Cannabis Regulations, valued at the greater of $1.06 per share and the 10 trading days Volume Weighted Average Price (“VWAP”) on the TSXV immediately prior to the License Date.
Invictus is a global cannabis company offering a selection of products under a wide range of brands. Our integrated sales approach is defined by five pillars of distribution including medical, adult-use, international, Licensed Producer to Licensed Producer and retail stores.
Invictus has partnered with business leaders to convey our corporate vision, including KISS music legend and business mogul Gene Simmons as our Chief Evangelist Officer. To meet growing demand, Invictus is expanding its cultivation footprint, with three cannabis production facilities licensed under the Cannabis Act and Cannabis Regulations in Canada. To accommodate international sales, Invictus’ wholly-owned subsidiary, Acreage Pharms Ltd. (“Acreage Pharms”), has designed and is currently building its Phase 3 purpose-built cultivation facility to be European Union Good Manufacturing Practices (“EU-GMP”) compliant. The Company is targeting up to 50 per cent of production to medical cannabis. To ensure consistency in quality and supply, Invictus maintains all aspects of the growing process through its subsidiary, Future Harvest Development Ltd., a high-quality Fertilizer and Nutrients manufacturer. Invictus drives sustainable long-term shareholder value through a diversified product portfolio with over 69 Health Canada approved strains and a multifaceted distribution strategy including medical, adult-use, international, Licensed Producer to Licensed Producer and retail stores. For more information visit www.invictus-md.com.