VANCOUVER, BC , Dec. 16, 2020 /CNW/ - Invictus MD Strategies Corp. (NEX: GENE.H) (the " Company ") announced today that it has entered into an agreement (the " Subscription Agreement ") for the issuance of 1,121,248,467 Invictus common shares (the " Subscribed Shares "). The Subscribed Shares will be equal to 90% of Invictus' issued share capital on completion of the transaction. As a result, on completion of the transaction existing shareholders will retain an aggregate 10% interest in the Company. It is anticipated that the subscription proceeds will be used to repay existing secured creditors of the Company, to pay costs associated with the CCAA proceedings involving the Company and its subsidiaries and to fund a plan of compromise and arrangement (the " Plan ") with the unsecured creditors of the Company. None of the subscription proceeds will be made available to existing shareholders of the Company.
The subscriber of the Subscribed Shares is Invictus Strategic Investment Inc. (the " Investor "), a privately-owned company that is unrelated to the Company and its directors and officers.
Completion of the Subscription Agreement is subject to condition precedents including Court approval of the transaction and the Plan being approved by the creditors of the Company and the Court in the CCAA proceedings currently underway involving the Company and certain of its subsidiaries.
The Company filed a motion for a court order to present the Plan to the creditors of the Company and subject to receiving certain approvals, plans to seek a sanction order from the Court approving the implementation of Plan.