INVICTUS MD STRATEGIES CORP. (TSXV: IMH; OTC: IVITF; FRA: 8IS1) is pleased to announce that since the release of its financial results for the third quarter ended October 31, 2017, which were filed on SEDAR on December 22, 2017, the Company has received $9,484,547 from the exercise of previously issued warrants and options. A total of 5,660,072 warrants and 21,000 options were exercised for proceeds of $9,476,167 and $8,380, respectively. As a result of such exercises, the Company currently has a total of 85,860,378 common shares issued and outstanding.
Invictus MD’s current cash balance is approximately $32 million. The target production capacity for 2019 is approximately 76,000 kg based on expanding facilities in 2019 to approximately 520,000 square feet. Invictus MD still has approximately 18.7 million warrants outstanding that would bring cash into the Company of approximately $33 million.
On January 8, 2018 the Company reported AB Labs received its authorization by Health Canada to sell dried marijuana under the ACMPR (“Sales License“). AB Labs which has 130 kg of dried marijuana in its vault intends to sell 100% of this inventory in January 2018 to Canopy Growth Corporation (TSX:WEED), initiating its first revenue stream since inception.
Invictus MD’s total annual kilogram capacity after various phases of expansion in 2018 and 2019, complete and in progress, is expected to be approximately 76,000 kg. The expected net production capacity to Invictus MD of approximately 67,000 kg after giving effect to the additional investment contemplated in its Letter of Intent with AB Labs that will bring Invictus MD’s ownership of AB Labs to 50%. With the recent exercise of warrants and options, Invictus MD’s funded capacity today is approximately 20,650 kg.
Dan Kriznic, Chairman and CEO commented, “We continue to focus on utilizing our $32 million of cash in treasury to build out additional square footage to meet the expected demand once Canada becomes recreationally legal this year. Our current funded capacity of 20,650 kg, as well as our planned expansion to get to approximately 76,000 kg in 2019 with a net to Invictus MD of 67,000 kg brings 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 33% 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 have an approximate annual run-rate production capacity of 76,000 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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