Vancouver, B.C., Aug. 30, 2019 (GLOBE NEWSWIRE) --
Vancouver, BC, August 30, 2019 - INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS1) announces that, in accordance with the Company’s plan to reduce operational costs and streamline the Company’s capital expenditures, it has agreed to sell off all the issued and outstanding shares (the “Canandia Shares”) of 0989561 BC Ltd. dba Canandia Bioceuticals (“Canandia”) to a company owned by Alon Amit, Director and Chief Executive Officer of Canandia (the “Transaction”). As consideration for the Canandia Shares, Canandia’s current cannabis crop, a cannabis plant to be provided by Invictus for propagation use by Canandia, and payment of $105,000 previously due, Invictus will be released from its obligation to purchase, for $3,300,000, the premises in which Canandia’s operations are located in Delta, British Columbia and all further future payment and other obligations to Mr. Amit associated with Invictus’ purchase of Canandia.
The Company’s CEO, Trevor Dixon, continues to develop synergy among the Invictus companies to further develop value for the Company’s shareholders. Mr. Dixon states, “As Canandia has not produced revenue to date, its business model did not suit the new direction of the Company as we remain focused on increasing shareholder value through strong returns on investment.”
Mr. Amit is a director and the Chief Executive Officer of Canandia and, as a result, the Transaction is a “related party transaction” under Multilateral Instrument 61-101 – Projection of Minority Securityholders in Special Transactions (“MI 61-101”). The directors of the Company determined that the Transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(a) of MI 61-101 and, in connection therewith, have determined that neither the fair market value of the Canandia Shares nor the consideration to be received, insofar as it relates to the related party, exceeds 25% of the Company's market capitalization. Closing of the Transaction remains subject to TSX Venture Exchange acceptance.
For more information, please visit www.invictus-md.com.
Chief Executive Officer
Investor Relations 1-844-800-6086
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 is a global cannabis company with a focus on the Canadian cannabis space, offering a selection of products under a wide range of cannabinoid profiles that fit the demand of the Company’s medical clients and retail customers. The Company’s integrated sales approach is defined by five pillars of distribution including medical, adult-use, international, Licensed Producer to Licensed Producer and sales to provinces.
To meet growing demand, Invictus is expanding its cultivation footprint with three cannabis production facilities licensed under the Cannabis Act, which replaced the Access to Cannabis for Medical Purposes Regulations in Canada. Invictus’ wholly-owned subsidiary Acreage Pharms Ltd.’s Phase I and Phase II facilities are in full production and Acreage’s Phase III cultivation facility is substantially completed. AB Laboratories Inc., a company which is a 50% owned subsidiary of Invictus continues its cultivation facility expansion. Another of Invictus’ wholly owned subsidiaries, 2015059 Alberta Ltd. (dba Leaf Wise), continues to connect medical clients to physicians for medical cannabis and to Invictus’ fully licensed cannabis producers under the Cannabis Act. Future Harvest Development Ltd., a company which is a 82.5% owned subsidiary of Invictus, continues to produce high-quality fertilizer and nutrients which are supplied to licensed cannabis producers. Invictus is targeting up to 50 percent of production to medical cannabis. Invictus drives sustainable long-term shareholder value by continuing to develop Invictus’ Canadian production of medical and recreational cannabis products. For more information visit www.invictus-md.com.
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. All statements in this news release, other than statements of historical facts, including statements regarding the closing of the Transaction and its terms, 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 that the Transaction will close on the terms as anticipated by management. 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, that the Transaction will not close on the terms as anticipated by management or at all. 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.
Invictus MD Strategies Corp.