INVICTUS MD STRATEGIES CORP. (“Invictus MD” or the “Company”) (CSE: IMH; OTC: IVITF; FRA: 8IS) Chairman and CEO Dan Kriznic is pleased to provide this update to it’s shareholders.
2016 was a transformational year for Invictus MD. The Company’s majority interest in Future Harvest Development Ltd. (“FHD”), initially purchased in February 2015, has performed exceptionally well. FHD produced record sales in 2016 as the burgeoning market for commercial hydroponics products continued to show an appetite for FHD’s unique lines of nutrients and equipment. Despite 50% year over year sales growth in 2016, the company is confident that FHD’s best growth is still ahead.
The timely acquisition of a bottling line and exceptional performance and leadership of key hires are leading an expansion into the fertilization sector, where key growth opportunities have been identified. Under the direction of Chris Pearson and newly hired research consultant from the University of British Columbia Dr. Paul Shipley, and head bioengineer Justin Pearson, FHD’s Plant Life Products and Holland Secret brands are successfully competing for and winning fertilizer market share. The fertilizer brands, along with the continuing success of companion metering product Grow Boss is earning the company a significant and growing position in the commercial hydroponics market.
The sale of FHD’s Sunblaster lighting line for $4.8 million in cash allowed the company the opportunity to issue a $0.07/ share dividend in December 2016 to Invictus MD shareholders for a total of approximately $1 million. The company remains committed to identifying undervalued cannabis industry assets and delivering that value to the shareholders.
Invictus MD expanded its portfolio of cultivation assets in 2016 by acquiring interests in Hamilton, ON based AB Laboratories Inc., a licensed producer under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) and more recently signed a binding letter of intent to acquire 100 percent of PlanC BioPharm Inc., a late stage applicant in active final review stage with Health Canada for a license under the ACMPR. The acquisition strategy is being conducted under the consultation of head horticulturist Philip Hague, and industry advisors Cannera Consultants. Philip Hague has designed and built out over 1 million square feet of licensed facilities in the US. The Company has made agreements to acquire interests in two other cultivation licenses in the US through the issuance of a combination of stock and cash over time at their sole option. A similar staged acquisition agreement was made in 2016 affording the Company the option to purchase a 49% interest in Zenalytic Laboratories (“Zen Labs), a Kelowna, BC based cannabis testing facility. Zen Labs has a revenue generating analytical testing laboratory, and expects to receive a Section 56 Class Exemption Dealer’s license from Health Canada, that will allow it to make efficient use of its 1500 square foot Kelowna facility.
The Company has invested in these complementary assets in order to take advantage of growth opportunities at both the cultivation and processing levels. Invictus MD continues to be interested in business assets at all stages of the cannabis business with a primary focus to be a leading cannabis cultivator in Canada under the ACMPR.
In 2017,, Invictus MD plans to expand both its individual cultivation assets and its wider cultivation portfolio. The team expects to have combined 154 acres of AMPR licensed cultivation by the end of 2017. The expansion plan forecasts 45,000 kilograms of high quality cannabis production by 2020 from Canadian assets alone. Invictus MDs’ Canadian production targets have been set in accordance with market forecasts provided by Deloitte, who estimates that the fulfillment of total Canadian retail marijuana demand “would require producing over 600,000 kilograms of marijuana annually…”
Invictus MDs’ wholly owned 2016 venture into consumer cannabis devices; Poda Technologies Ltd. (“Poda”) is set for an exciting launch in Q2 2017. Poda will roll out an effective, reliable and convenient way to vaporize cannabis that is designed to appeal to modern retail and medical consumers. The Poda Pod vaporizer product has been designed to connect to users’ smartphones via bluetooth, providing real time information about dosage, product characteristics, supply, and availability. Agreements are being negotiated to license the PODA products to ACMPR licensed producers in Canada, helping those producers better reach and serve consumers with convenient, refillable devices. Company research has identified enormous potential in processed consumer cannabis products, and management is looking forward to acquiring and developing proven consumer brands in the cannabis space going forward.
About Invictus MD Strategies Corp.
Invictus MD’s primary vision is to become a leading producer in Canada under the ACMPR in order to meet future demand targets. We provide not only capital to meet this objective 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 the cannabis industry.
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
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, assumptions or expectations of future performance, 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, that the Company will obtain all requisite approvals of the spin-out transaction, and they 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 the proposed spin-out may not occur as planned; the timing and receipt requisite approvals. 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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