SEATTLE, WA--(Marketwired - Apr 12, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article covering Invictus MD Strategies Inc. (
Invictus MD Strategies has made tremendous progress in growing its cultivation portfolio throughout March and set the stage for growth in April and beyond.
The company closed a $16.2 million over-subscribed private placement on March 2 and committed C$2 million of that funding to acquire 33.33% of AB Laboratories Inc., a licensed producer with a 16,000 square foot facility located in Hamilton, Ontario, on March 14. The company also has first right of refusal to arrange any initial public offering, reverse takeover, or other going public transaction for AB Labs -- a significant caveat of the deal.
Invictus MD Strategies also acquired a 33.33% stake in AB Ventures, a newly incorporated company developing a second licensed expansion facility through its common ownership with AB Labs. A 100-acre acquisition is scheduled to close on May 1, 2017 where the company will develop an initial 42,000 square foot cultivation facility along with an additional five production facilities, totaling 100,000 square feet of space.
Earlier in the year, the company signed an option agreement for the acquisition of OptionCo, and on March 30 OptionCo received its license to cultivate as Acreage Pharms Ltd. Invictus has 30 days from that date to finalize the 100% acquisition and intends to do so. The terms of this agreement include an issuance of 21 million shares of Invictus, $4 million in cash to the current shareholders of Acreage Pharms and 3 million warrants exercisable at $1.50 per share.
Invictus MD has also committed $6 million from its treasury for building expansion at Acreage Pharms, which has already built and begun cultivation in a 6,800 square foot production facility. The expansion plan calls for an additional 30,000 square feet with an option to add 20,000 square feet at a mezzanine level on 150 acres of land in Edson, Alberta. Alberta has low costs of production due to lower energy and water costs.
By 2020, Invictus expects to have more than 50,000 kilograms of annual capacity, which could make it one of the largest licensed producers in the country.
Canada's cannabis industry could reach $22.6 billion over the coming years, according to Deloitte, with a retail market worth up to $8.7 billion. In addition to a strong domestic market, the country has become an important cannabis exporter to countries that don't permit the domestic cultivation of cannabis. The growing acceptance of medical marijuana around the world could translate to significant international expansion opportunities for licensed growers.
With the limited number of licensed producers, there's a monopoly of sorts on the market for cultivating cannabis for both recreational and medical purposes. The process of obtaining a license also takes several years and involves a very strict set of requirements that are both time-consuming and expensive to meet. Early licensed producers have an opportunity to capture users as recreational legalization goes into effect and build further barriers to entry.
Please follow the link to read the full article: http://www.cannabisfn.com/invictus-md-strateg...potential/
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About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
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Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns CFN Media and CannabisFN.com, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/ .
CFN Media Frank Lane 206-369-7050 flane@cannabisfn.com
