Invictus MD Strategies Corp. (OTCMKTS: IVITF, and CVE: IMH) is one of the many Canadian companies taking steps to prepare for the legalization of recreational marijuana in Canada, which is expected to take effect as early as July of this year. Prime Minister of Canada Justin Trudeau, staying true to his election campaign pledge, introduced legislation on April 13, 2017 to legalize marijuana for recreational use. The proposed legislation is now making its way through the approval process. Once recreational marijuana becomes legal, the anticipated increase in demand for it will drive growth in the industry. Invictus MD Strategies Corp. is expanding its production capability in preparation for the recreational cannabis market.Invictus MD Strategies Corp. is focused on three main verticals within the burgeoning Canadian cannabis sector: Licensed Producers under the Access to Cannabis for Medical Purposes Regulations (ACMPR) located in both Alberta and Ontario, including Acreage Pharms Ltd. and AB Laboratories Inc.; fertilizer and nutrients through Future Harvest Development Ltd.; and Cannabis Data and Delivery, with its wholly owned subsidiary Poda Technologies Ltd.Invictus MD targets small and mid-size companies with proven brands, strong customer focus, and significant growth potential. Invictus directs the strategy towards profitability and growth for each of their portfolio companies. They assist the companies with business process integration and by structuring and deploying proper capital to support sustained growth.Invictus MD’s stock has been trading on the Canadian Stock Exchange, and now as of March 27, 2017, it has received conditional approval to list its common shares for trading on the TSX Venture Exchange.Over the last year Invictus MD has made some significant achievements including the successful test crops at AB Laboratories Inc., currently operating at half capacity, with full production capacity scheduled by the end of May 2017. Another significant realization is the 100 acre acquisition by AB Ventures Inc. scheduled to close on May 1, 2017, that once licensed under the ACMPR, will be used for future cannabis cultivation with plans to construct five production facilities on the new land totaling 100,000 square feet.There's also the closing of the definitive option agreement to acquire 100% interest in OptionCo. OptionCo has constructed a 6,800 square foot facility with a 30,000 square foot expansion plan floor plate, and an option to add a mezzanine within the 60,000 square foot secured perimeter sitting on 150 acres of secured-title land. The large land package provides sufficient expansion capability to construct the necessary facilities to meet future demand resulting from the coming adult recreational marijuana use opportunity. On March 30, 2017, OptionCo announced that it has received its license to cultivate under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") as Acreage Pharms Ltd. ("Acreage Pharms").
"This is a historic day for our Company, our sector and investors," said Dan Kriznic, Chairman & CEO, Invictus MD. "We are Canada's Cannabis Company. We now have 250 acres of cultivation space that stretches from Alberta to Ontario. Alberta has low cost of production as a result of low energy and water costs. The property is friendly to building as many square feet as required based on the significant demand. The CEO of Acreage Pharms is a serial entrepreneur and has been successful in previous ventures. He will be a key addition to the Invictus MD team. As one of the few cannabis producing companies in North America approved under the ACMPR this will enable us to engage and satisfy a wider investor audience, strengthening the sector and bring Invictus MD to international institutional investors."
On the sales side of the operation, Invictus MD announced on April 19, 2017 that its subsidiary AB Laboratories Inc. entered into an agreement with Canopy Growth Corporation's (TSE:WEED). This agreement allows AB Laboratories Inc to provide their unique products in Canopy Growth’s curated “CraftGrow” line of products on Tweed Main Street's online store, giving AB Labs immediate access to the largest customer base in the rapidly expanding medical cannabis market.
On the financial front, Invictus MD announced on April 20, 2017, that it engaged a syndicate of underwriters in a bought deal private placement offering of convertible debentures with aggregate gross proceeds of $40 million, and an option for an additional $10 million. This capital infusion will certainly put Invictus MD in a strong position to capitalize on the upcoming legalization of recreational marijuana. IVITF has been moving upward since early November of 2016. Its moved from $.5296 to as high as $1.63 on April 20, 2017. The stock is currently trading on the OTC market at $1.4989. Current market capitalization stands at $58.62million, on 38.06 million shares outstanding as of April 21, 2017.We will be updating our subscribers as soon as we know more. For the latest updates on IMH/IVITF, sign up below!Disclosure: We have no position in IMH/IVITF and have not been compensated for this article.
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