Invictus MD Strategies Corp (OTCMKTS:IVITF) plan towards becoming the largest cannabis entity in Canada is still on course. Recent events show the firm continuously fostering new partnerships in a bid to ensure that they meet this fundamental objective, the most recent of which is a partnership with one of Ontario’s retail cannabis players.
While this is the case, IVITF’s share price is now also slowly recovering from a bear run suffered during the period between September and December. This period saw the firm’s price plummeted from $1.75 per share to $.5, significant of a 71.4% decline. This, however, wasn’t the case merely for IVITF as other entities within the cannabis and other sectors also declined during the period. To put this into perspective, the S&P 500 index declined 19.6% during the same period, falling by 574 points. Similarly, moreover, the index is also seeing its recovery presently.
The recovery by IVITF has seen its share price rise and plummet is quick succession, rising to $1 per share and later declining to $.75 per share. Currently, the firm is trading at $.78 per share. The traded volumes have also remained conservative through the recent past with an average of about 80,000 shares traded during this period. Readers can review this price action in the chart below:
Recent events, despite not having a significant impact on the company’s short-term share price, are expected to affect it in the long-term. The decision made by the company, while seemingly operational, has a bearing on their strategic focus. As a result, we are reviewing the company so as to evaluate how the latter will be achieved.
Brief History of IVITF
Invictus MD Strategies Corp was incorporated back in 2014 and headquartered in White Rock, Canada.
The firm, as well as its subsidiaries, operate within the medical cannabis industry, inclining themselves towards investing, acquiring and developing synergies within the sector. The business model entails seeking different entities within the sector and developing synergies between them. This has enabled them to venture into the entire cannabis value chain whereby they produce and sell medical cannabis as well as develop the technology used to vaporize it.
A lot has happened since our last review of the company.
Recently, moreover, following talks with different entities, the past week has seen the company (through one of its subsidiaries) enter into a major agreement which will see them venture into the retail cannabis space.
Moreover, given the aforementioned strategy to join the whales of the cannabis sector, the firm has opted to hire additional top-level management. This new team, through an agency, is meant to further streamline processes, boost their marketing campaigns and ensure the investors are kept up to date.
The above are further discussed in detail below:
IVITF is currently working towards the launch of their T2C medical brand in partnership with Authentic Brands Group.
The firm has thus put in place a robust campaign which is expected to cost them about CAD $500,000. In sum, it is meant to see Invictus reach about 500,000 households in North America and sensitize them on the new product thus boosting brand awareness and educating the masses on the product.
IVITF therefore, during the past month, announced that they had hired a prominent strategic consulting agency from Toronto to manage their marketing operations over a six-month contract. The firm, which has over 35 years of experience in the healthcare sector, will act as the Chief Marketing Officer (CMO) therefore act as the strategic marketing, creatives, and live agency partner.
As a result, the new CMO is tasked with ensuring that this launch is successfully executed. They will be working with the teams at both companies to ensure that the launch brings with it the intended hype thus marketing expectations. Under the terms, Invictus will compensate the firm with a CAD $45,000 monthly fee which is payable through an equivalent of IVITF’s common shares.
IVITF also enlisted Darwin Productions Inc to manage their investor relations and marketing campaign on a CAD $25,000 per month contract. The firm is meant to further generate a direct email option for the firm and manage it. All this should be achieved as at early March.
New Forged Partnership
Invictus’ product portfolio is expected to increase in 2019. The firm has put in considerable resources into expanding its product line, specifically in oils, new strains and concentrates. Looking ahead, therefore, there is a need to ensure that the firm’s product actually reaches the market. This is the reasoning behind the newly forged partnership.
IVITF, through its subsidiary (Acreage Pharms Ltd), signed a partnership agreement with Ontario Cannabis Store to supply superior quality cannabis products meant for the recreational cannabis market.
With the additional products expected from IVITF and its subsidiaries, the firm will need to continue working through such agreements to ensure their products reach the market, thus, boost their revenues. The primary basis for this is the continued growth in the recreational cannabis market in Canada, one whose demand will need to be satisfied.
The final push is for IVITF to work with the government to fine-tune the regulations for the edible cannabis market. While this may take time, their implementation will see companies operating therein benefit from a boost in their product line.
The latter is expected to be completed by the fourth quarter of 2019.
IVITF continues to work towards becoming a whale in Canada’s cannabis market and their entry into the retail space is the final push to consolidate the value chain. The firm’s growth through the years speaks to the company’s strategic outlook.
While the firm works towards expanding its product line and consequently boosting their sales, the new focus on the North American market is meant to allow them into a bigger market and ensure their brand consequently grows. Given this, we are optimistic about the future of IVITF and are therefore bullish about the stock’s expected performance.
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Disclosure: We have no position in IVITF and have not been compensated for this article.