(TheNewswire)
VANCOUVER, BC / TheNewswire / December 23, 2016 -
INVICTUS MD STRATEGIES CORP. ("Invictus MD" or the "Company") (CSE: IMH; OTC: IVITF; FRA: 8IS) is pleased to announce
that it has signed the definitive agreement to acquire 33.33% of AB Laboratories Inc. (“AB Labs”), a Licensed Producer under the
Access to Cannabis for Medical Purposes Regulations (“ACMPR”), and up to 33.33% of AB Ventures Inc. (“AB Ventures”), a newly
incorporated company formed to develop a second licensed expansion facility.
Under the terms of the agreement Invictus MD will acquire
33.33% of AB Labs, for consideration of CAD$5,000,000 in cash and 2.4 million common
shares of Invictus MD on closing and CAD$2,000,000 in cash 90 days after closing. AB Labs is
licensed for cultivation under the ACMPR and maintains a
16,000 square foot facility located in Hamilton,
Ontario. Invictus MD will have the right of first refusal to arrange any initial public offering, reverse take- over or other
going public transaction of AB Labs or AB Ventures following closing. Closing is expected to take place by December 29,
2016.
AB Ventures plans to acquire and develop 100 acres in Hamilton, Ontario for cannabis cultivation and sale under the
ACMPR. Invictus MD has committed $7.5 million to fund for the costs of licensing approval under the ACMPR, acquiring land and
constructing the cultivation facility, in exchange for a 33.33% interest in AB Ventures. AB Ventures is currently in
negotiation to acquire a suitable property and has plans to initially construct a 21,000 square foot facility, which would position
the company to become one of the top tier Licensed Producers in Canada. Considering the anticipated size of AB Ventures’
proposed land acquisition and facility and assuming AB Ventures obtains a license to produce the quantity forecasted for the
proposed facility, the combined production capacity of both AB Labs and AB Ventures is expected to exceed 20,000 kilograms in 2019.
Deloitte, a well-respected consulting company, recently published a survey that suggested the Canadian retail cannabis market
would be worth between
$4.9 billion and $8.7 billion annually. Additionally the market for marijuana products and
services - including growers, testing labs, lighting, and security systems - would increase that number to between
$12.7 billion and $22.6 billion. Once taxes, licensing fees, and weed-related
tourism are factored in, the market could even be greater than $22.6 billion. The consulting firm further
estimates that satisfying the recreational cannabis market will mean producing 600,000 kilograms of marijuana annually - far more
than the existing 36 licensed producers grow for medicinal purposes.
Dan Kriznic, CEO of Invictus MD, commented, “This is a tremendous milestone for Invictus-
MD and its shareholders. Breaking ground into the ACMPR has always been our intention since
inception of our Company in December 2014. Partnering with the right team has been the most important criteria. After meeting, discussing, and conducting our due diligence on
over 5
Licensed Producers, we are
pleased with our partnership
with AB Labs and AB Ventures. When
both parties met, we both knew that this would be a great fit immediately.”
About Invictus MD Strategies Corp.
Invictus MD targets cannabis companies with proven brands, strong customer focus, and
significant growth potential. We provide not only capital to meet these objectives but also years of management
experience from a team that has been successful in all facets of business, from establishing start-ups to running large
international organizations. The fundamental core of our operations centers on the vast opportunities within fragmented
industries.
Invictus MD works in partnership with management teams to increase shareholder value through business planning and
process integration, developing and executing growth strategies, leveraging our experience and relationships, and structuring and
deploying the proper capital to support long-term growth. Our prudent approach to both investing in and developing successful
companies ensures successful execution of the business plan in both times of economic
expansion and contraction.
For more information, please visit www.invictus-md.com.
On Behalf of the Board, Dan Kriznic
Chairman & CEO
604-368-6437
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that
may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements
within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements in this news release,
other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or
expectations of future performance, including the timing and completion of the proposed acquisitions of interests in AB Ventures
and AB Labs and estimated
production capacity, are forward-looking statements and contain forward-looking information. Generally,
forward-looking statements and information can be identified by the use of forward- looking terminology such as “intends” or
“anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”,
“should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company
and the opinions and estimates of management as of the date of this press release, including the assumptions that all conditions to
closing will be satisfied, the proposed
acquisitions of AB Ventures and AB Labs will occur as anticipated, that the Company will obtain
all requisite approvals of the acquisitions, that AB Ventures will acquire land sufficient to build the proposed
cultivation facility and such facility will be successfully built, that AB Ventures will be granted a license to produce the
anticipated quantities under the ACMPR and all other
required governmental approvals to produce and sell marijuana under the ACMPR will be
obtained by AB Ventures and the AB Labs will obtain all approvals required for its proposed production quantities.
These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied
by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary,
include, without limitation, the risk that conditions to
closing will not be satisfied or that the proposed acquisitions may otherwise not occur as planned, risks related to
the timing and receipt of requisite approvals, the risk that AB Ventures will not: acquire land sufficient to build the proposed
cultivation facility, successfully build the proposed cultivation facility or obtain a license or any other approvals required to
produce the anticipated quantities under the ACMPR, and the risk that AB Labs will not obtain all approvals required for its
proposed production quantities. Although management of the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be
other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are
cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any
forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in
accordance with applicable securities laws. We seek safe harbour.
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