Invictus MD prepares for legalization with expected cannabis ready production of 6,000 kg

Posted on Categories: Investor Relations

Vancouver, BC, October 27, 2017 – INVICTUS MD STRATEGIES CORP. (“Invictus MD” or the “Company”) (TSXV: IMH; OTC: IVITF; FRA: 8IS1), through its interests in two Access to Cannabis for Medical Purposes Regulations (“ACMPR“) license holders, its wholly-owned subsidiary Acreage Pharms Ltd. (“Acreage Pharms”) and its one-third interest in AB Laboratories Inc. (“AB Labs”), expects to have production capacity of 6,000 kg commencing January 2018, several months before Canada expects cannabis to become recreationally legal. Total current production capacity at both locations is approximately 1,500 kg.

License Capacity and Term

Health Canada has removed the previously disclosed production capacity restrictions at both Acreage Pharms and AB Labs. In addition, AB Labs received an extension of its existing ACMPR license for a period of two years and Acreage Pharms’ ACMPR license was extended through to March 2020.

Update on Sales Approval

AB Labs has submitted a request to Health Canada to amend its license to allow for the sale and distribution of medical cannabis (the “Amendment”). Health Canada’s approval of the Amendment is subject to, among other things, a regulatory inspection of AB Labs’ production facility and cannot be guaranteed by the Company. However, management of the Company is confident that AB Labs is compliant with all necessary requirements, that AB Labs’ facility will pass the required inspection and that Health Canada will approve the Amendment and grant AB Labs a sales license in due course.

Acreage Pharms has submitted additional samples to three independent labs licensed by Health Canada and management is confident Acreage Pharms will receive a sales license once the quality assurance team has analyzed the results. This will be a significant milestone for Acreage Pharms and the Company.

Update on Production

AB Labs plans to release over 6 Lots consisting in excess of 75 kg over the next one to three months. The facility is currently at full production and development plans have been submitted for an expansion at the AB Ventures Ltd. 100 acre site in Hamilton, Ontario. The current facility at AB Labs can produce 1,000 kg at full capacity.

Acreage Pharms’ existing facility is also currently at full production and additionally has converted a vegetative room into a flowering room, thereby providing additional production capacity. Total capacity is expected to reach 5,000 kg by January 2018 when Acreage Pharms completes its current 32,000 square foot expansion. Acreage Pharms phase 2 expansion is currently underway with the completion of the concrete foundation and expectation the tilt up slab concrete walls will be installed by end of November.

Management commentary

Dan Kriznic, Chairman & CEO, of Invictus MD, commented “I am very pleased to report that our operational activities are unfolding according to our business plan, and that our strategic efforts to build Canada’s Cannabis Company are coming together. The issuing of the sales and distribution Amendment to Acreage Pharms and AB Labs cultivation license under the ACMPR would constitute a significant value catalyst for our shareholders. I would further comment that the company’s balance sheet remains very strong; it has minimal debt and the approximate $26 million cash in the treasury has been reserved to expand its canopy footprint on its 250 acres of property, making it one of the top producers under the ACMPR. This production is needed to meet the significant demand for high quality, standardized, pesticide free product not only for the existing medical market but also to accommodate the recreational market that will commence mid 2018.”

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, Acreage Pharms Ltd. and AB Laboratories Inc.; along with Fertilizer and Nutrients through Future Harvest Development Ltd.

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, 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 Labs, AB Ventures and Acreage Pharms, the success and timing of AB Labs’ release of additional lots; and the success and timing of Acreage Pharms’ expansion plans, 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 AB Labs, AB Ventures and Acreage Pharms will receive regulatory approval to sell medical cannabis at their production facilities’ full capacity, AB Ventures will be granted a license under the ACMPR, AB Ventures is able to successfully build a production facility and Acreage Pharms is able to successfully complete its expansion plans. 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 or reach full production capacity, AB Ventures will not be granted a license under the ACMPR, AB Ventures is not able to successfully build a production facility; and Acreage Pharms is not able to successfully complete its expansion plans. 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.

Ottawa Makes Smart Move With Edibles

Posted on Categories: Knowledge CentreTags: , , , , , ,

We already know what Canadians are puffing —among others, we reportedly love the cannabis strains Romulan (created in British Columbia) and Lowryder, which thrives in cooler climates.

But soon, we will know what kinds of cannabis treats Canadians are nibbling, too.

In a pivot that we champion, Ottawa announced this month that it no longer plans to ban edible cannabis products from store shelves in Canada. We won’t see edibles until a year after recreational sales are legal, which is scheduled for July 1 of next year. But at least we are on the proper path.

Cannabis offers manifold benefits to a wide variety of consumers — from people seeking anxiety- and sleep-relief to those who just want to unwind after a long day at work. But smoking is not for everybody. Some people, like asthmatics, reject smoking for health reasons. Others prefer the cannabis experience that comes from edibles — the effects mount slowly (rather than rise quickly, as with smoking), and they last longer.

Eliminating the edibles choice would have needlessly penalized people who choose not to smoke. And it could have fostered an unfortunate black market — people who need or desire cannabis but were barred from the legal market due to regulations would stand as ripe opportunities for black marketeers. We would like to eliminate the black market altogether, of course, and we feel it is especially urgent for cannabis edibles. These are food products, and like all Canadian food products should be subject to regulatory oversight and regulation. The last thing we want to see is a black market for things like cannabis candies, which if made by unregulated amateurs could lead to dangerous products.

The planned roll-out of cannabis edibles is about 20 months away, which means we have plenty of time to draft sensible regulations and for entrepreneurs to begin applying for the licenses they will need, find manufacturing space and accomplish the rest of the tasks necessary before opening a business.

Permitting the sale of edibles is fair to consumers, and potentially beneficial to Canadian business.

In Colorado, Washington and Oregon, the U.S. states with the biggest and most mature recreational cannabis marketplaces, edibles for the first half of this year captured 13 percent of the overall cannabis market, with sales of $181.5 million, according to cannabis data analytics firm BDS Analytics. The broad category, including everything from chocolates to cookies, tinctures, capsules and crackers, is one of the more commercially varied and effervescent slices of the cannabis pie. Edibles brands, unlike flower products, require investments in food-making equipment. And their success rests, in part, upon branding, packaging and messaging (as well as quality). The best flower businesses, on the other hand, remain fixed on quality and relationships with the wholesale and dispensary markets. Public-facing branding is not vital.

Where growing is agricultural, and invites people interested in everything from lighting technology to hydroponics to the cannabis table, edibles is a food industry. Chefs, bakers, product development specialists and others interested in that line of work are attracted to edibles jobs. In addition, professional product designers play important roles in this industry. Just consider the brand bonanza surrounding the food industry — it is the busiest commercial marketplace in the world. Cannabis edibles will never approach the broad food industry, in terms of brand proliferation. But if edibles regulations in Canada are structured wisely, we could witness a healthy expansion of jobs, occupied real estate, tax receipts and overall economic vitality. We certainly see a lot of economic activity in Colorado, Washington and Oregon due to these states’ highly regulated edibles industries.

The work on edibles lies ahead for all Canadians — from growers to food production specialists to parents concerned about keeping products away from their kids. The principal goals are the same for all of us — safe products, and economic vitality.

Invictus MD Updates Shareholders on Cannabis Legalization Process

Posted on Categories: Investor Relations

Vancouver, BC, October 17, 2017 – INVICTUS MD STRATEGIES CORP. (“Invictus MD” or the “Company”) (TSXV: IMH; OTC: IVITF; FRA: 8IS1) Today, Invictus MD updated shareholders that it is taking steps to monitor the government policy development process in advance of the legalization of recreational cannabis that is expected in July 2018.

“There are a number of authorities across the country that are developing policies and regulations to support the successful legalization of recreational cannabis. Invictus MD is monitoring these jurisdictions and will engage officials when necessary,” stated Dan Kriznic, Chairman and CEO of Invictus MD.

Invictus MD in Ontario

Invictus MD has been closely monitoring the recreational cannabis framework released by the Ontario government. Some highlights of Ontario’s proposed cannabis framework are:

  • Ontario will mirror the Liquor Control Board of Ontario model for retail sales
  • Purchase and consumption age will be 19 years old
  • Cannabis will not be sold alongside alcohol or in the same location
  • Current private dispensaries are illegal and will be shut down
  • Recreational cannabis use will be permitted in private residences only for now
  • Ontario will operate a scale up approach to storefront retail locations with 40 stores initially, 80 stores by the end of the first year and 120 stores by 2020
  • Online access will be available at the outset
  • Retail locations will resemble the early days of LCBO locations where product is not displayed and kept behind the counter for ordering
  • The new entity will only purchase from federally licensed producers within Canada
  • The government is not speculating on supply and possible increases in demand at the moment
  • The government is only permitting the smoking and ‘vaping’ of cannabis, no edibles at this time

Invictus MD in Alberta

Representatives from Invictus MD attended the Alberta Cannabis Secretariat’s Framework session in Edmonton last week where we were able to monitor stakeholder reaction to Alberta’s framework, including:

  • Oversight and enforcement of regulations will be carried out by the Alberta Gaming and Liquor Commission
  • The government plans to act as the wholesaler and clearinghouse for all cannabis sales through the AGLC using a “postage stamp” model for wholesaling the product – the wholesale price would be identical throughout the province.
  • The government wishes to ensure that both large and small producers can compete to supply the market with the AGLC by acting as a single buyer.
  • There has not been a decision as to whether the sale of cannabis should be made by government-owned stores, or by private retailers.
  • Purchase and consumption age will be 18 years old and will initially only be available in physical stores, not through online sales.
  • Use of the product will not be permitted at retail locations and are not planning to permit lounges and cafes.

Legislative Update on Bill C-45 (Federal Cannabis Act)

Currently, Bill C-45, an Act Respecting Cannabis and to Amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed second reading in June 2017 and was referred to the Standing Committee on Health where they are reporting on the Bill with amendments.

IR Agreement

The Company has entered into an investor relation’s agreement (the “IR Agreement”) with Gold Standard Media LLC, a limited liability company existing under the laws of the State of Texas with an office at 1102 S. Austin Ave, #110-283, Georgetown, Texas, USA. The term of the IR Agreement is for a three-month public awareness campaign. In connection with the IR Agreement, the Company will be compensated one hundred and fifty thousand dollars.

Options Granted

The Company also reports that it has granted 1,535,000 incentive stock options to directors and consultants of the Company. The stock options are exercisable for a period of five years at an exercise price of $1.34 per share. The options were granted under and are subject to the terms and conditions of the Company’s Stock Option Plan.

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 wholly owned subsidiary Acreage Pharms and its non-wholly owned affiliate AB Laboratories Inc.; along with Fertilizer and Nutrients through its non-wholly owned subsidiary Future Harvest Development Ltd.

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

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.