VANCOUVER, Jan. 15, 2019 /PRNewswire/ - INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE;OTCQX: IVITF; FRA: 8IS1) announced that pursuant to the terms of a non-binding letter of intent (the "LOI") entered into with GTEC Holdings Ltd. (TSXV: GTEC; OTC:GGTTF) ("GTEC"), as announced on November 16, 2018, the parties have mutually agreed to terminate the LOI and not proceed with the merger, with a preference for increased strategic collaboration in building out the route to adult consumer retail side.
GTEC and Invictus maintain a strong working relationship based on its previously announced definitive agreement dated August 30, 2018 whereby:
- GTEC has entered into a $2m convertible loan facility with Invictus, at an interest rate of prime plus 5%. The loan facility is convertible at $1.50 per common share of GTEC and is due on the date that is two years following the date of the first draw. As of the date hereof, GTEC has drawn-down the facility.
- As additional consideration, GTEC has provided Invictus with a right of first refusal to fill up to 30% of any cannabis purchase order domestically and internationally (whether for flower or oil) that GTEC, or its wholly-owned subsidiaries are seeking to purchase from third party Licensed Producers for a period of two years.
"Invictus is continually aiming to realize its vision of building a global cannabis company anchored on its Western Canadian roots, with a focus on satisfying patients' and consumer's needs in the medical and recreational markets, respectively" said George E. Kveton, President and CEO of Invictus. "We look forward to maintaining and further increasing our strong, strategic partnerships with companies like GTEC to support our five pillars of distribution including medical, recreational, international, Licensed Producer to Licensed Producer, and retail."
"We look forward to continuing down the path of GTEC becoming one of Canada's leading premium focused and vertically integrated cannabis companies, while maintaining a strong working relationship with the Invictus team" said Norton Singhavon, Founder, Chairman & CEO. "2019 will prove to be an instrumental year for GTEC as we continue to execute on our vision and strategy within the premium cannabis market in Canada."
For more information, please visit www.invictus-md.com.
On Behalf of the Board,
George E. Kveton
Chief Executive Officer and Director
Vice President, Public Relations and Regulatory Affairs
Invictus is a global cannabis company offering a selection of products under a wide range of brands. Our integrated sales approach is defined by five pillars of distribution including medical, adult-use, international, Licensed Producer to Licensed Producer and retail stores.
Invictus has partnered with business leaders to convey our corporate vision, including KISS music legend and business mogul Gene Simmons as our Chief Evangelist Officer. To meet growing demand, Invictus is expanding its cultivation footprint, with three cannabis production facilities licensed under the Cannabis Act and Cannabis Regulations in Canada. To accommodate international sales, Invictus' wholly-owned subsidiary, Acreage Pharms Ltd. ("Acreage Pharms"), has designed and is currently building its Phase 3 purpose-built cultivation facility to be European Union Good Manufacturing Practices ("EU-GMP") compliant. The Company is targeting up to 50 percent of production to medical cannabis. To ensure consistency in quality and supply, Invictus maintains all aspects of the growing process through its subsidiary, Future Harvest Development Ltd. ("Future Harvest"), a high-quality fertilizer and nutrients manufacturer. Invictus drives sustainable long-term shareholder value through a diversified product portfolio with over 70 Health Canada approved strains and a multifaceted distribution strategy including medical, adult-use, international, Licensed Producer to Licensed Producer and retail stores. For more information visit www.invictus-md.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE Invictus MD Strategies