VANCOUVER, Feb. 26, 2018 /CNW/ - INVICTUS MD
STRATEGIES CORP.'s ("Invictus" or the "Company") (TSXV: IMH; OTC:
IVITF; FRA: 8IS1) is pleased to provide an update on a series
of accomplishments since January 2017
that put the company and its subsidiaries on strong footing for
full cannabis production across 2018.
"We began this historic year full of ambition and a strategic
plan for executing milestone goals as Canada marches towards full cannabis
legalization. We are thrilled to announce that progress on all
fronts is on schedule and we are fulfilling our aggressive goals,"
said Dan Kriznic, Chairman and CEO of Invictus. "Thanks to
exceptional teamwork, singular business discipline and savvy, and
deep passion for this industry, Invictus is on track for meeting
expanding consumer demand for high-quality cannabis and cannabis
products during this extraordinary year and beyond."
Invictus' Acreage Pharms Ltd. (Acreage Pharms) in
west-central Alberta, AB
Laboratories Inc. (AB Labs) near Hamilton, Ontario and AB Ventures Inc. (AB
Ventures) also near Hamilton,
Ontario, all are experiencing progress in terms of
regulatory steps, construction landmarks, staff expansions,
investment momentum, science achievements and other key business
goals.
Acreage Pharms
Acreage Pharms Phase 2 facility is nearly complete, putting
Acreage Pharms on track for 4,400 kg of annual cannabis production
capacity. The timely construction also keeps Phase 3 construction
plans on schedule which is expected to be completed in 2018.
Both the Phase 1 and Phase 2 facilities at Acreage Pharms have a
total of approximately 40,000 square feet with expected 4,400 kg of
capacity beginning in March 2018,
along with a further planned 80,000 square foot Phase 3 expansion
for total combined production capacity of 18,400 kg in 2018.
Invictus further expects its Acreage Pharms to receive its sales
license in the first quarter of 2018, as it has already harvested
multiple successful crops and the product has already been
tested.
In addition, Acreage Pharms has embarked on an ambitious
extraction program to serve Canada's expanding need for high-quality
cannabis oils. To that end, Acreage Pharms acquired innovative C02
oil extraction technologies and hired key professionals to launch
the program. Acreage Pharms will apply for an oil license from
Health Canada as soon as it receives its anticipated sales
licenses.
The acquisition of a closed-loop C02 extraction system is
essential for Acreage Pharms' market strategy. 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. The innovative process produces
very high-quality cannabis oils.
Supercritical C02 extraction offers the blossoming cannabis
industry the promise of understanding the myriad medical benefits
of cannabis. By giving concentrate makers so much control over the
process, it gains them access to cannabinoids within the plant
beside THC and CBD, which some researchers believe will be vital
components of ongoing cannabis research and development.
The new technology program requires the guidance, oversight and
scientific savvy of seasoned professionals, and Acreage Pharms is
thrilled to add Chris Kooner, RPh
and Dr. Dejun Cui to the team. Both
of these pharmacy and agriculture veterans have been with Acreage
for six months, but now are pivoting their responsibilities towards
the new oils extraction program.
As Canada moves closer to the
anticipated July launch of recreational cannabis sales, consumer
demand for strain diversity continues to expand. Acreage Pharms has
taken steps to satisfy consumer desires for strain variety by
acquiring 23 new strains.
"The acquisition of these strains broadens Acreage Pharms strain
variety in preparation for the recreational market," said Kriznic.
"The timing is ideal, as our Phase 2 expansion includes 11 new
flowering rooms and Phase 3 is expected to have 38 new flowering
rooms, all of which will be needed to accommodate this welcome and
dramatic expansion of strains."
The collaboration allows Acreage Pharms to import genetics,
including seed and starting material. As a result, Acreage Pharms'
already innovative and ambitious genetics breeding program is
better able to offer a variety of strains that fully reflect the
genetic diversity of cannabis, including its many health-enhancing
properties.
AB Labs
Invictus this month completed the previously announced further
strategic investment in the licensed production facility under the
Access to Cannabis for Medical Purposes Regulations
("ACMPR"), AB Labs located near Hamilton, Ontario, from its 33.3% ownership
interest to 50%.
Dan Kriznic, Chairman and CEO commented, "This is another
significant milestone for Invictus. When we started this company in
2014 it was with the intention of becoming Canada's Cannabis Company. AB Labs produces
high quality strains, which will meet the increasing demand in the
Canadian marketplace."
The terms of the investment include a direct cash investment in
AB Labs of $10 million to be used for
the expansion of AB Labs' existing facility, acquisition of the
land and building at the existing facility from the landlord, and
for the acquisition of adjacent land and building as well as the
retrofitting costs for that existing building (the "Secondary
Facility"), for a combined production space of approximately
56,000 square feet. Invictus will make available to AB Labs a
$2 million line of credit in the
event costs exceed budget during the construction period.
The timeline for full production at AB Labs remains firmly in
place, as Phase 2 property consolidation is nearly complete. The
closing for the Phase 2 building acquisition and consolidation of
properties at the facility is set for February 28, 2018.
In addition, AB Labs this month also announced the sale of its
first 120 kg of dried flower to Canopy Growth Corporation
(TSX:WEED). AB Lab's products will be used in Canopy Growth
Corporation's curated CraftGrow line on Tweed Main Street's online
store. Tweed Main Street features only high-quality cannabis by an
elite group of producers, and AB Labs is thrilled that consumers
will find its product as part of the Tweed Main Street's carefully
curated selections.
"Patients routinely get in touch with AB Labs inquiring about
our high-quality product. Now, they can take advantage of Canopy
Growth's Tweed Main Street to gain immediate and detailed
information about our artisan cannabis. The effort gives us
immediate access to the largest customer base in the rapidly
expanding medical cannabis market," said Dan Kriznic,
Chairman and CEO of Invictus. "Our collaboration with Canopy
Growth demonstrates our commitment to making the sector strong and
helping to expose medical cannabis patients visiting Tweed Main
Street, to another high quality, unique brand."
AB Ventures
AB Venture's development permit on 100 acres of land for the
Phase 1 construction is fully funded, and its license application
to Health Canada is currently in-progress.
Once AB Ventures receives its Access to Cannabis for Medical
Purposes Regulation (ACMPR) license, the entire property has the
potential for cannabis cultivation. In the near term, AB Ventures'
funded Phase 1 development plans include a 21,000 square foot
facility for cultivation and production, which this month received
conditional approval from authorities. Phase 2 plans include
facilities totaling 84,000 square foot.
Invictus MD Strategies
The increase in Invictus' ownership of AB Labs and the different
on-track expansion plans dramatically increases Invictus' timeline
for increasing expected annual run-rate production capacity at the
facilities.
Invictus' license holders' total annual kilogram capacity after
various phases of expansion in 2018 and 2019, complete and in
progress, is expected to be approximately 76,400 kg, based on
expanding facilities in 2019 to approximately 520,000 square feet.
The expected net production capacity to Invictus is approximately
67,000 kg after giving effect to Invictus' increased ownership of
AB Labs to 50 percent. With the recent exercise of warrants and
options, Invictus' funded capacity today is approximately 27,200
kg.
About Invictus MD Strategies Corp.
Invictus MD Strategies Corp. is focused on two main verticals
within the Canadian cannabis sector, namely the Licensed
Producers under the ACMPR, being its 100% investment in Acreage
Pharms Ltd., located in West-Central Alberta, and 50% investment in
AB Laboratories Inc., located near Hamilton, Ontario which has both its
cultivation and sales license under ACMPR. Combined the two
licenses and an expected third license under AB Ventures Inc. are
expected to have an approximate annual run-rate production capacity
of 76,400 kg by 2019. In addition to ACMPR licenses the Company has
an 82.5% investment in Future Harvest Development Ltd. a Fertilizer
and Nutrients manufacturer based in Kelowna, British Columbia.
For more information, please visit www.invictus-md.com.
On Behalf of the Board,
Dan Kriznic
Chairman & CEO
Larry Heinzlmeir
Vice President, Marketing & Communications
604-537-8676
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, timing, assumptions
or expectations of future performance, including the potential
production capacity of AB Labs, AB Ventures and Acreage Pharms'
production facilities, the granting of regulatory approval and
anticipated timing of AB Labs reaching full production capacity,
the granting of a sales license under the ACMPR to AB Ventures and
Acreage Pharms, Acreage Pharms' receipt of a sales license and the
success and timing of Acreage Pharms' expansion plans, expected
sales of inventory and the completion of the increase in the
Company's ownership of AB Labs pursuant to the definitive agreement
(the "Transaction") 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 AB Labs, AB Ventures and Acreage
Pharms will satisfy all conditions for, and receive, regulatory
approval to sell medical cannabis at their production facilities'
full capacity, AB Ventures will satisfy all conditions for and be
granted a license under the ACMPR and will receive a development
permit on the expected terms, AB Ventures is able to successfully
build a production facility, Acreage Pharms will satisfy all
conditions for and successfully obtain the anticipated sales
license and will successfully complete its expansion plans, the
anticipated sales of inventory will take place on the terms and
timing expected by management, all conditions to the closing of the
Transaction will be satisfied and the Transaction will complete on
the terms set out in the definitive agreement and that the
legalization of recreational use of cannabis in Canada will occur as expected. 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 AB Labs, AB Ventures and Acreage
Pharms will not receive regulatory approval to sell medical
cannabis at their production facilities for their full production
capacity or at all, that AB Labs, AB Ventures or Acreage Pharms
will not reach full production capacity, that AB Ventures will not
be granted a license under the ACMPR or will not receive a
development permit on the expected terms or at all, that AB
Ventures is not able to successfully build a production facility,
that Acreage Pharms is not able to obtain the anticipated sales
license when expected by management or at all or is not able to
successfully complete its expansion plans, that the anticipated
sales of inventory will not occur on the terms and timing expected
by management or at all, that the Transaction will not complete on
the expected terms or at all and that the legalization of
recreational use of cannabis in Canada will not occur at all or as expected.
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 out-look that are
incorporated by reference herein, except in accordance with
applicable securities laws. We seek safe harbor.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Invictus MD Strategies