​Invictus (IMH)(IVITF) Increases Investment in AB Laboratories

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INVICTUS MD STRATEGIES CORP. (TSXV: IMH; OTC: IVITF; FRA: 8IS1) is pleased to announce that the Company has completed the previously announced further strategic investment in the licensed production facility under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"), AB Laboratories Inc. ("AB Labs") located near Hamilton, Ontario, from its current 33.3% ownership interest to 50%.

Dan Kriznic, Chairman and CEO commented, "This is another significant milestone for Invictus. When we started this company in 2014 it was with the intention of becoming Canada's Cannabis Company. AB Labs produces high quality strains, which will meet the increasing demand in the Canadian marketplace. Additionally we expect to receive a sales license for Acreage Pharms Ltd. ("Acreage Pharms") within the first quarter of 2018."

The terms of the investment include a direct cash investment in AB Labs of $10 million to be used for the expansion of AB Labs' existing facility, acquisition of the land and building at the existing facility from the landlord, and for the acquisition of adjacent land and building as well as the retrofitting costs for that existing building (the "Secondary Facility"), for a combined production space of approximately 56,000 square feet. Invictus will make available to AB Labs a $2 million line of credit in the event costs exceed budget during the construction period.

Invictus' license holders' total annual kilogram capacity after various phases of expansion in 2018 and 2019, complete and in progress, is expected to be approximately 76,400 kg, based on expanding facilities in 2019 to approximately 520,000 square feet. The expected net production capacity to Invictus is approximately 67,000 kg after giving effect to the Invictus' increased ownership of AB Labs to 50%. With the recent exercise of warrants and options, Invictus' funded capacity today is approximately 27,200 kg.

Dan Kriznic, Chairman and CEO commented, "We continue to focus on utilizing our $38 million of cash in treasury to build out additional square footage to meet the expected demand once Canada becomes recreationally legal, which is anticipated this year. With our current funded capacity of approximately 27,200 kg and our additional planned expansion to get our license holders to approximately 76,400 kg in 2019 with a net to Invictus of 67,000 kg it would bring us in line with some of our peers that are leading the industry. The Sales license for AB Labs has been a catalyst to getting to this stage and the next catalyst will be our sales license for Acreage Pharms that is expected to occur in this first quarter of 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, being its 100% investment in Acreage Pharms Ltd., located in West-Central Alberta, and 50% investment in AB Laboratories Inc., located near Hamilton, Ontario which has both its cultivation and sales license under ACMPR. Combined the two licenses and an expected third license under AB Ventures Inc. are expected to have an approximate annual run-rate production capacity of 76,400 kg by 2019. In addition to ACMPR licenses the Company has an 82.5% investment in Future Harvest Development Ltd. a Fertilizer and Nutrients manufacturer based in Kelowna, British Columbia.

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Companies

Symbol Name Price Change % Volume
IVITF Invictus MD Strategies Corp 1.64 -0.09 -5.20 711,426

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