Vancouver, B.C., Dec. 16, 2019 (GLOBE NEWSWIRE) -- Vancouver, BC, December 16, 2019 - INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS2) is pleased to announce that it has signed a binding letter of intent dated December 11, 2019 with Unified Cannabis Corp. of Calgary, Alberta (“Unified”) pursuant to which Unified, subject to acceptance by the TSX Venture Exchange (the “Exchange”), has agreed, by way of a non-brokered private placement (the "Private Placement"), to subscribe for secured convertible debentures in the principal amount of $5,700,000 (the "Debentures") with a maturity date of December 31, 2020 (the "Maturity Date") and 29,223,212 common share purchase warrants with an exercise price of $0.19505 per common share of the Company (“Common Share”) and an expiry date of December 21, 2020 (the “Warrants”).
From the issued date of the Debentures until the Maturity Date, the outstanding principal under the Debentures will be convertible, at the option of Unified, into Common Shares at a conversion price of $0.19505 per Common Share. Interest on the Debentures will accrue at a rate of 8% per annum. At the election of the Company, the interest accrued on the Debentures may, subject to approval of the Exchange, be convertible into Common Shares at a conversion price of $0.19505 per Common Share. The Debentures will be secured by way of a second charge against Acreage Pharms Ltd.’s facility located in Yellowhead County, Alberta.
The proceeds of the Private Placement are expected be used to fund the completion of the Phase III west wing of the Company’s wholly owned subsidiary Acreage Pharms Ltd. and general working capital purposes.
The closing date of the Private Placement is anticipated to be no later than December 31, 2019 (“Closing Date”). On the Closing Date, two individuals nominated by Unified will be appointed to the Board of Directors of the Company.
Closing of the Private Placement is subject to all necessary regulatory and stock exchange approvals. All securities issued in connection with the Private Placement will be subject to a four-month hold period from the date of issue under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
In connection with the Private Placement, the Company has agreed to pay certain finders an aggregate total cash finder’s fee equal to 5% of the gross proceeds of the Private Placement.
For more information, please visit www.invictus-md.com.
arc Ripa
Interim Chief Executive Officer
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