Mr. Dan Kriznic reports
INVICTUS RECEIVES $16.5 MILLION FROM WARRANTS AND OPTION EXERCISES SINCE DEC 22, 2017 AND INCREASES FUNDED CAPACITY IN 2018 TO 27,200 KG
Invictus MD Strategies Corp. has received an additional $16,536,234 from the exercise of previously issued warrants and options since Dec. 22, 2017, bringing Invictus's cash balance to approximately $38-million. A total of 9,658,179 warrants and options for 26,000 shares were exercised for proceeds of $16,527,854 and $10,130, respectively. As a result of such exercises, the company currently has a total of 89,863,485 common shares issued and outstanding. There are 14,686,743 warrants outstanding that would bring cash into the company of approximately $26-million, and additionally, options for 8,518,000 shares outstanding that would bring in approximately $13.2-million.
Invictus's licence 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 kilograms, 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 additional investment as a result of the definitive agreement signed with AB Labs that will bring Invictus's ownership of AB Labs to 50 per cent. With the recent exercise of warrants and options, Invictus's financed capacity today is approximately 27,200 kg.
Forecast Invictus MD Invictus MD
Square Produced Invictus financed expansion
feet Status Financed to date Capacity MD ownership capacity capacity
(%) (kg) (kg) (kg) (kg)
Acreage Pharms
Phase 1 6,600 Complete 100% 160 600 100% 600 600
Phase 2 33,000 Jan. 31, 2018 100% - 4,400 100% 4,400 4,400
Phase 3 80,000 Sept. 30, 2018 100% - 14,000 100% 14,000 14,000
Phase 4 80,000 March 1, 2019 36% - 14,000 100% 5,092 14,000
Phase 5 160,000 Sept. 1, 2019 0% - 28,000 100% - 28,000
Total 359,600 160 61,000 24,092 61,000
AB Laboratories
Phase 1 15,600 Complete 100% 180 900 50% 450 450
Phase 2 40,000 June 15, 2018 100% - 4,000 50% 2,000 2,000
Total 55,600 180 4,900 2,450 2,450
AB Ventures
Phase 1 21,000 Prelicence 100% - 2,100 33% 700 700
Phase 2 84,000 Prelicence 0% - 8,400 33% - 2,772
Total 105,000 - 10,500 700 3,472
Total 520,200 340 76,400 27,242 66,922
Dan Kriznic, chairman and chief executive officer, 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 this year. Our current funded capacity is approximately 27,200 kg, as well as our planned expansion to get our licence holders to approximately 76,400 kg in 2019 with a net to Invictus of 67,000 kg, bringing us in line with some of our peers that are leading the industry. The sales licence for AB Labs has been a catalyst to getting to this stage and the next catalyst will be our sales licence for Acreage Pharms that is expected to occur in this first quarter of 2018."
About Invictus MD Strategies Corp.
Invictus MD Strategies is focused on two main verticals within the Canadian cannabis sector, namely the licensed producers under the ACMPR (Access to Cannabis for Medical Purposes Regulations), being its 100-per-cent investment in Acreage Pharms, located in west-central Alberta, and 50-per-cent investment in AB Laboratories Inc., located near Hamilton, Ont., which has both its cultivation and sales licences under ACMPR. Combined, the two licences and an expected third licence under AB Ventures Inc. are expected to have an approximate annual run-rate production capacity of 76,000 kilograms by 2019. In addition to ACMPR licences, the company has an 82.5-per-cent investment in Future Harvest Development Ltd., a fertilizer and nutrients manufacturer based in Kelowna, B.C.
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