Vancouver, BC / November 10, 2015 - INVICTUS MD STRATEGIES CORP. ("Invictus MD" or the "Company") ($IMH:CNX) ($IVITF) (FRA) is pleased to report that Future Harvest Development Ltd. (“Future Harvest”), of which Invictus MD currently owns 60%, has continued to achieve record-breaking sales and is on pace to generate the targeted sales goal of $6-7 million for the current fiscal year.
During Future Harvest’s first quarter ended September 30, 2015, nearly $1.1 million in sales was generated, as compared to $615,000 in the prior year quarter, representing an increase of over 75%. During the month of October 2015, Future Harvest achieved its forecasted sales target and generated approximately $603,000 in gross revenue, representing a 22% increase as compared to October 2014.
Mike Blady, VP Sales and Marketing for Future Harvest commented, “We are excited and looking forward to the future. The lawn and garden industry continues to see steady year over year growth. The hydroponic industry is poised for explosive growth in North America with recent legislative reform and the commercial and residential urban farming movement is blossoming as consumers demand access to fresh healthy produce. Future harvest is actively selling into these markets and will continue to execute on its business strategy. Typically our sales are cyclical in our industry, with the slowest sales period being in our fiscal first quarter. The significant increase in sales, especially during our historically slowest quarter, demonstrates the growth potential within this fragmented industry. Based on sales to date, we are on track to achieving our gross sales target of $6-7 million for the current fiscal year.”
As previously announced, the Company has received approval from its board of directors to complete a spin-out of its interest in Future Harvest into a newly formed public company (“NewCo”). As part of the spin-out, shareholders of the Company will receive one share in NewCo for every one share they hold of Invictus MD as of the record date, which will be announced once determined. The Company expects the spin-out to be completed by Spring 2016, subject to applicable regulatory and stock exchange approvals.
The Company currently controls 60% of Future Harvest with an option to acquire up to 75%, which management intends on exercising prior to completion of the proposed spin-out.
Following the spin-out, Edison Vape Co. Ltd. (“Edison”), a wholly-owned subsidiary of the Company, will be the key driver within Invictus MD as management continues to work towards commercialization with an anticipated launch in California within the first quarter of 2016.
The technology behind the Edison Vape product includes a host of revolutionary and innovative features which management believes will provide Edison with a strong competitive advantage. As previously announced, Edison has filed a US provisional patent on its innovative technology, and has plans to file a worldwide non-provisional patent beginning in January 2016.
Dan Kriznic, President and CEO commented, “In order to provide the most value to our shareholders, our primary focus moving forward will be executing on our initial launch of the Edison Vape products and deploying our roll-up strategy within Future Harvest while continuing to grow sales. The industries in which both Edison and Future Harvest operate have seen explosive growth, and in order to capitalize on this we will continue to aggressively execute on our strategy.”
About Future Harvest Development Ltd.
For over 20 years, Future Harvest has brought innovative products and solutions to the hydroponic and indoor growing industries. Future Harvest’s product lines are available through leading distributors and retailers across North America, the United Kingdom and Europe and include SunBlaster Lighting™, Nutradip, Plantlife Products and Future Harvest Plastics, as well as the Nano-Dome and Grow Light Garden systems currently sold at major hardware and home garden centers across North America.
The SunBlaster Lighting™ line has introduced a variety of innovative lighting products to both the hydroponic and indoor growing industries. SunBlaster T5HO lighting fixtures and CFL self ballasted lamps are industry leaders and a great example of Future Harvest’s commitment to providing customers with the best possible lighting for all their growing needs.
Future Harvest has been manufacturing metering and monitoring equipment for over fifteen years. The most popular and industry standard is the Trimeter, made famous because a single glance tells you if your pH, nutrients and temperatures are on target. All Nutradip and SunBlaster products are developed, designed, tested and assembled in Canada.
Plantlife Products consists of 29 proprietary formulas that offer growers the leading edge in sediment free plant nutrition. Every product has been developed and tested in-house by Future Harvest’s own plant scientists.
For more information please visit www.futureharvest.com.
About Edison Vape Co. Ltd.
Edison Vape Co. is engaged in the design, development, patenting, manufacture, and distribution of a new and improved system for vaporization using low cost single-use PODs. The founders of Edison Vape Co. have a combined 13 years of experience designing, developing, patenting, manufacturing, and distributing innovative products and accessories.
About Invictus MD Strategies Corp.
Invictus MD targets companies with proven brands, strong customer focus, and significant growth potential. We not only provide capital to meet these objectives but also years of management experience from a team that has been successful in all facets of business from start-ups to running large international organizations. The fundamental core of our operations is centered on the vast opportunities within fragmented industries.
Invictus MD works in partnership with management teams to increase shareholder value through business planning and process integration, developing and executing growth strategies, leveraging our experience and relationships, and structuring and deploying the proper capital to support long-term growth. Our prudent approach to both investing in and developing successful companies ensures successful execution of the business plan in both times of economic expansion and contraction.
For more information please visit www.invictus-md.com.
On Behalf of the Board,
Chairman & CEO
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 or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, including the timing and completion of the proposed spin-out of Future Harvest, the forecasted revenue for Future Harvest, and projections regarding the potential future value of the cannabis industry 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 the assumptions that the proposed spin-out of Future Harvest will occur by Spring 2016, that the Company will obtain all requisite approvals of the spin-out transaction, that current Future Harvest sales levels will be sustained and result in the generation of approximately $6-7 million in revenue for the fiscal year ending June 30, 2016, and they 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, the risk that the proposed spin-out may not occur by Spring 2016 as planned; the timing and receipt requisite approvals; unexpected operational difficulties (including failure of equipment, unavailability of material, industrial disturbances or job action) as well as other unanticipated events that may prevent Future Harvest from reaching gross sales targets; and failed projections notwithstanding solid research efforts. 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. To the extent that the anticipated achievement of Future Harvest’s gross sales target may constitute a financial outlook within the meaning of applicable Canadian securities laws, such information has been approved by management of the Company and is provided for the purposes of providing information relating to management and Future Harvest’s current expectations and plans. 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 outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbour.
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