Vancouver, BC, February 1, 2016 – INVICTUS MD STRATEGIES CORP. (“Invictus MD” or the “Company”) (CSE: IMH; OTC: IVITF; FRA: 8IS) is pleased to announce that Future Harvest Development Ltd. (“Future Harvest”), of which Invictus MD currently owns 75% indirectly through its subsidiary Prestige Worldwide Holdings Inc., has entered into an asset purchase agreement (the “Agreement”) with Sunblaster Holdings ULC, a B.C. company, (“Sunblaster Holdings”) to sell Future Harvest’s Sunblaster product line effective February 1, 2016 (the “Closing Date”) for total cash consideration of $3,854,836 plus inventory on hand. Preliminary inventory shows an estimated $900,000 on hand at the Closing Date.
Under the terms of the Agreement, the total consideration is to be paid as follows:
- $50,000 cash deposit (paid);
- $3 million cash payable on the Closing Date;
- an amount equal to inventory on hand, at cost, as determined and payable within 30 days from the Closing Date;
- the final reconciliation payment, including any adjustments to freight based on actual spend, is due in cash on June 30, 2016;
- a management fee payable to Future Harvest of 2.8% of gross Sunblaster product line sales until June 30,2016; and
- operating cost recoveries of approximately $24,000 per month until June 30, 2016.
Future Harvest’s management will continue to manage operations and sales at the Kelowna, British Columbia facility in Canada. Dan Kriznic, CEO of Invictus MD commented “The sale of Sunblaster lighting will provide the necessary capital to grow our Plant Life Products fertilizer division as well as our Edison Vape vertical. The operations at Future Harvest will remain status quo as we continue to manage the day to day operations as normal.”
About Future Harvest Development Ltd.
For over 20 years, Future Harvest has brought innovative products and solutions to the hydroponic and indoor growing industries. Future Harvest’s product lines are available through leading distributors and retailers across North America, the United Kingdom and Europe and include SunBlaster Lighting™, Nutradip, Plantlife Products and Future Harvest Plastics, as well as the Nano-Dome and Grow Light Garden systems currently sold at major hardware and home garden centers across North America.
The SunBlaster Lighting™ line has introduced a variety of innovative lighting products to both the hydroponic and indoor growing industries. SunBlaster T5HO lighting fixtures and CFL self ballasted lamps are industry leaders and a great example of Future Harvest’s commitment to providing customers with the best possible lighting for all their growing needs.
Future Harvest has been manufacturing metering and monitoring equipment for over fifteen years. The most popular and industry standard is the Trimeter, made famous because a single glance tells you if your pH, nutrients and temperatures are on target. All Nutradip and SunBlaster products are developed, designed, tested and assembled in Canada.
Plantlife Products consists of 29 proprietary formulas that offer growers the leading edge in sediment free plant nutrition. Every product has been developed and tested in-house by Future Harvest’s own plant scientists.
For more information please visit www.futureharvest.com.
About Invictus MD Strategies Corp.
Invictus MD targets companies with proven brands, strong customer focus, and significant growth potential. We not only provide capital to meet these objectives but also years of management experience from a team that has been successful in all facets of business from start-ups to running large international organizations. The fundamental core of our operations is centered on the vast opportunities within fragmented industries.
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,
Chairman & CEO