Mr. Trevor Dixon reports

INVICTUS MD COMPLETES ACQUISITION OF ACREAGE PHARMS LTD. A LICENSED PRODUCER OF CANNABIS UNDER THE ACMPR

Invictus MD Strategies Corp. has acquired 100 per cent of the shares of Acreage Pharms Ltd., a licensed producer of cannabis under the access to cannabis for medicinal purposes regulations (ACMPR).

The company is pleased to announce the appointments of the vendors to the company's management team. Trevor Dixon has been appointed director and chief executive officer of the company, and Brenda Dixon has been appointed the chief science officer of the company. Dan Kriznic will continue his leadership role as executive chairman of the company.

"This is an exciting day for Invictus MD and our shareholders. With the company's acquisition of 100 per cent of licensed producer Acreage Pharms in Alberta, we now have 250 acres of cultivation space that stretches from Alberta to Ontario. Acreage Pharms will benefit from a low cost of production as a result of low energy and water costs. Additionally, the property is friendly to building as many square feet as required based on the significant demand, which Deloitte reports to be between $4.9-billion and $8.7-billion annually. I'm also very pleased with Trevor's appointment as CEO, a highly successful entrepreneur and businessman, and also with Brenda's appointment. Invictus MD is fortunate to have both of the Dixons on board in capacities that will see the company continue to rapidly expand in the burgeoning cannabis sector. We are Canada's cannabis company," said Mr. Kriznic.

"I'm passionate about researching and producing products that have the potential to improve the quality of life for fellow Canadians and am very pleased to be a part of this amazing industry, Invictus MD, and its team of forward-thinking professionals," stated Mr. Dixon, president and CEO.

The company and the vendors amended the composition of the purchase price for Acreage Pharms concurrently with closing to: (i) decrease the share consideration by one million shares to 20 million common shares and (ii) increase the cash consideration by $2-million to $6-million. The terms of the three million warrants issued to the vendors with an exercise price of $1.50 per warrant, of which one-third will expire every six months on the anniversary of closing, were not changed. Please see the company's news release dated Feb. 24, 2017, for additional information.

Canada's cannabis industry could reach $22.6-billion over the coming years, according to Deloitte, of which the retail market could be worth up to $8.7-billion. With only 43 producers licensed by Health Canada thus far, there is a significant market opportunity for Invictus MD to capitalize on this growth over time. The company has focused on building its production profile, which includes:

• AB Laboratories Inc., a licensed producer under the ACMPR, has successfully conducted test crops and is currently operating at half capacity, with full production capacity scheduled by the end of May, 2017. It has also acquired a number of different strains and is negotiating numerous others for research and development purposes.
• AB Ventures Inc.'s 100-acre acquisition is scheduled to close on May 1, 2017, which, once licensed under the ACMPR, will be used for future cannabis cultivation. Invictus MD has made a commitment to invest $5.5-million, which will be used to finance the costs of licensing approval under the ACMPR and the initial construction of 42,000 square feet. Considering the magnitude of AB Ventures' land acquisition and future production facilities, and assuming AB Ventures obtains a licence to produce the quantity forecasted for the proposed facility, the combined production capacity of both AB Labs and AB Ventures is expected to exceed 25,000 kilograms in 2020.
• Acreage Pharms has constructed a 6,800-square-foot production facility and has an expansion plan floor plate of 30,000 square feet, with an option to add a mezzanine. The large 150-acre land package provides the capability to construct facilities to meet the demand that the coming adult recreational marijuana use will create. Acreage Pharms also has plans to produce extracted or oil-based products, which are rapidly gaining market share in the cannabis sector. By 2020, Acreage Pharms anticipates production to exceed 25,000 kilograms of high-quality, low-cost cannabis.

"From day one, we have been very clear: To acquire and grow production capacity under the ACMPR that would allow us to seize the recreational market, when available, was the key driver to increasing shareholder value," said Mr. Kriznic. "Given our ability to aggressively expand the commercial scale of the Acreage Pharms property, we will make key capital investments that enable us to rapidly ramp up production capability."

Canada is on the global stage for cannabis legalization and moves closer to making history by being the first G7 nation to legalize and regulate access to cannabis for responsible adult consumption, and the company welcomes the regulatory framework around legalization while reducing access for underage Canadians, keeping profits out of the hands of the black market, and ensuring that customers are protected by having access to clean and safe product. This is of utmost importance, given the expected demand that will come with cannabis legalization for the recreational market.

The company embraces the role it will play in the establishment of a secure environment for the continued development of a new cannabis economy that will generate even greater investment, innovation, economic development and job creation to many locations across Canada.

As Canada embarks on this historical and brave path, Invictus MD looks forward to working alongside all levels of government to achieve its goal of keeping cannabis out of the hands of youth and establishing a legitimate market while eradicating the black market.

In connection with the closing, the company issued to an arm's-length finder a fee consisting of common shares and cash based on 5 per cent of the consideration paid in this transaction.

About Invictus MD Strategies Corp.

Invictus MD Strategies is focused on three main verticals within the burgeoning Canadian cannabis sector: licensed producers under the ACMPR, including investment in the fully licensed facilities operated by AB Laboratories and Acreage Pharms; fertilizer and nutrients through Future Harvest Development Ltd.; and cannabis data and delivery with its wholly owned subsidiary, Poda Technologies Ltd.

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