Ottawa Makes Smart Move With Edibles

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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.

Invictus MD Announces Q2 Year 2017 Results

Posted on Categories: Uncategorized

Vancouver, BC, September 28, 2017 – INVICTUS MD STRATEGIES CORP. (“Invictus MD” or the “Company”) (TSXV: IMH; OTC: IVITF; FRA: 8IS1) is pleased to announce its financial results for the quarter ended July 31, 2017. The Company’s financial statements for the period are available under the Company’s profile on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars.

Operational Highlights

  • All of Invictus MD’s existing licensed production facilities under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”), its wholly owned subsidiary Acreage Pharms Ltd., located in West-Central Alberta, and its non-wholly owned affiliate AB Laboratories Inc., located near Hamilton, Ontario, are at full production.
  • The foundation for the 32,000 square-foot Phase 2 facility at Acreage Pharms Ltd. has been poured; the exterior is expected to be completed by the first part of November 2017 and the interior expected to be completed by the end of January 2018. The new facility will house nine, 1,600 square foot flowering rooms, maximizing available floor space and allowing for a fully controlled and optimized environment facilitating a harvest every two weeks.
  • Based on the improvements realized from Phase 1 plus the construction of the Phase 2 facility, Acreage Pharms will have a production run rate of approximately 5,000 kg of cannabis per annum commencing February 2018
  • The capital costs of constructing the Phase 2 facility continue to remain within the $6 million that was initially budgeted.
  • Initial harvests in the existing state-of-the-art production facility, using pesticide free growing systems and Good Production Practices, has resulted in high quality, non-irradiated medical cannabis. Currently Acreage Pharms has 80,000 grams of dried cannabis in its vault, ready for sale once it receives its sales license.
  • As of July 31, 2017 Invictus MD has $28 million cash in the treasury and approximately $30.75 million working capital.

Management commentary

“Invictus MD’s journey has been defined by its agility, innovation and disciplined execution of our business strategy, achieving progressive growth in its production facilities and shareholder value,” said Dan Kriznic, Chairman & CEO, of Invictus MD. The company’s balance sheet is very strong; it has minimal debt and working capital of $30.75 million. The approximate $28 million cash in the treasury has been reserved to expand its canopy footprint on its 250 acres of property and produce 15,000 kg per annum 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 next year.”

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

Cautionary Note Regarding Forward-Looking Statements: Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; and the plans for completion of the Offering, expected use of proceeds and business objectives. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. Although Invictus has attempted to identify important factors that could affect Invictus and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended, including, without limitation, the risks and uncertainties related to the Offering not being completed in the event that the conditions precedent thereto are not satisfied. In making the forward-looking statements in this news release, Invictus has applied several material assumptions, including the assumptions that (1) the conditions precedent to completion of the Offering will be fulfilled so as to permit the Offering to be completed on or about June 1, 2017; (2) all necessary approvals will be obtained in a timely manner and on acceptable terms; and (3) general business and economic conditions will not change in a materially adverse manner. There can be no assurance that Forward-Looking Information 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 Information. Except as required by law, Invictus does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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.

Ontario Heads in Smart Direction

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Ontario has issued its plans for how to implement cannabis legalization once it becomes national law, and we believe there is much to champion in the province’s approach towards building a smart regulatory framework that benefits consumers, businesses and government.

As owners of cannabis grow facilities in different provinces, we are eager to begin working with regulatory bodies as they begin drafting rules. We of course fully embrace rules that provide wide latitude to consumers and businesses, but we also endorse a framework that offers clear and sturdy structure to the ways in which we conduct business, shop and consume. Ontario’s efforts reflect a legacy of hard work on the part of provincial staff and quite a bit of regulatory savvy.

This has been a long time coming.

The decades-long demonization of cannabis, as we all know, was misguided and, frankly, absurd. This plant offers the world far too much — everything from avenues towards medical treatment to the same sort of social stimulus provided by lager and cabernet.

With legal cannabis in its fourth year in the United States (both Colorado and Washington rolled-out legal cannabis in 2014) we have much to examine, in terms of the plant’s social impacts. So far, cannabis sales have pumped millions of dollars into state tax coffers, jumpstarted the nation’s fastest-growing industry, offered thousands of jobs and filled warehouses and storefronts that formerly were vacant with commercial activity. Meanwhile, legalization has not led to boosted crime rates, escalating youth cannabis use (in fact, some studies suggest youth cannabis use in legal marijuana states is declining) or emerging health problems.

Studies are conflicting about whether legal cannabis has led to increased traffic accidents and fatalities. Either way, like all responsible cannabis advocates we believe cannabis use, like drinking alcohol, does not mix with driving. And thus we are pleased to see Ontario address potential issues surrounding cannabis and driving with well-considered regulations.

Our enthusiasm for Ontario’s cannabis regulatory framework does not suggest we believe there is not room for improvement. The process is just beginning, and we look forward to engaging with regulators and stakeholders about important issues ranging from the kinds of products available (including cannabis sold in edible form) to the distribution of legal cannabis stores throughout the province, workplace education, and the potential introduction of designated establishments where cannabis could legally be consumed; for now Ontario’s proposed rules forbid cannabis consumption outside of private residences.

As other provinces work to establish regulatory frameworks, we believe Ontario’s approach is an excellent starting point. We all have much work ahead, and we are eager to roll up our sleeves and get involved.