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Invictus Announces Definitive Option Agreement with Late-Stage Application under the ACMPR

Invictus MD Strategies Corp. has entered into a definitive option agreement under the Access to Cannabis for Medical Purposes Regulations to acquire 100% of the outstanding shares of OptionCo.

Invictus MD Strategies Corp. GENE:CA IVITF is pleased to announce that further to its news release dated May 16, 2018, it has successfully entered into a definitive option agreement with a Late-Stage Applicant (“OptionCo”) under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) to acquire 100% (the “Option”) of the outstanding shares of OptionCo from its current shareholders (the “Vendors”).

OptionCo has a cannabis production and research facility located in Delta, British Columbia (the “Delta Facility”), and an additional property located in Mission, British Columbia (the “Mission Location”)that is currently awaiting construction of a 350,000square foot purpose-built indoor facility, which will be built in multiple phases with completion set for the fourth quarter of 2019. The Mission Location is located on 32-acres of buildable land. The property is eligible for wholesale energy costs with 38 MG Watt service at the property line, and access to an ample water supply from underground aquifers.

The Option will be exercisable at the sole option of Invictus within 30-days of OptionCo notifying the Company that the Delta Facility has received its license to cultivate under the ACMPR. The exercise price of the Option (the “Exercise Price”) will be payable by the Company as follows:

a) C$2.5 million in cash, less a C$100,000 deposit already paid by the Company to the Vendors, to repay agreed upon debts of OptionCo;

b) C$10 million in common shares of the Company (“Common Shares”) issued to the Vendors on the date (the “Issue Date”) that is within 10 business days of exercising the Option, valued at a price per Common Share being the greater of: (i) C$1.65 per Common Share; and (ii) the 10-day Volume Weighted Average Trading Price (“VWAP”)of the Common Shares on the TSX Venture Exchange (the “Exchange”) immediately prior to the Issue Date with the following release schedule:

a. 25% of the Common Shares on the Issue Date; and

b. 25% of the Common Shares every 4 months thereafter.

c) investment in the sum of C$10 million (the “Investment”) in cash into OptionCo to be used for a 50,000 square foot expansion of the Mission Location and working capital purposes. The Investment will be in the form of a commitment from the Company and will be paid into OptionCo over time on an as-needed basis; and

d) C$7 million in Common Shares issued to the Vendors on the date that is within 10 business days of the Mission Location receiving its cultivation license under the ACMPR (the “Mission License Date”), valued at the 10 trading days VWAP on the Exchange immediately prior to the License Date.

The Delta Facility has completed its pre-license inspection from Health Canada and expects to receive its license to cultivate medical cannabis under the ACMPR in short order.

About Invictus

Invictus owns and operates two cannabis production facilities, both with sales licenses, under the ACMPR in Canada, with the vision of producing a variety of high quality and low-cost cannabis products to the global market, as regulations permit. The Company’s wholly owned subsidiary, Acreage Pharms Ltd. (“Acreage Pharms”), is located in West-Central Alberta. The Company’s 50% owned AB Laboratories Inc. (“AB Labs”), is located in Hamilton, Ontario. AB Ventures Inc. (“AB Ventures”) owns 100 acres of land near Hamilton, Ontario, to be used for future cannabis cultivation. Recently, the Company announced that it has entered into a definitive option agreement to acquire an applicant (“OptionCo”) under the ACMPR. Combined, the Company expects to have approximately 211,000 and 915,000 square feet of cannabis production capacity by the end of 2018 and 2019, respectively.

Gene Simmons, music legend and media mogul, conveys the vision of Invictus as the Chief Evangelist Officer.

The Company’s wholly owned subsidiary, Poda Technologies Ltd. (“Poda”), has developed the world’s first zero-cleaning vaporizer system. Poda’s fully biodegradable pods are self-contained, and do not contaminate the vaporizer with odor, flavor or residue.

Finally, the Company’s 82.5% owned Future Harvest Development Ltd. (“Future Harvest”) is a high-quality Fertilizer and Nutrients manufacturer, based in Kelowna, British Columbia. Future Harvest has been in operation for over 20 years under the brand Plant Life Products and Holland Secret.

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