It has been a slow rise for Invictus MD Strategies Corp (OTCMKTS:IVITF). The company took a hit during the period when the entire cannabis market went down, however, they are on their way back up. If the trend holds, IVITF will soon be a force in the industry.
You can view their price action in the chart below:
IVITF: The Background
Founded by Dan Kriznic on February 11, 2014, Invictus is a Canadian company based in Vancouver which deals mainly with cannabis and is licensed to carry out research on its medical as well as recreational benefits.
The company has a team of growers who have over 250 acres under crop unerring the guidance of leading horticulturists, biochemist and project managers. This goes along to exemplify the commitment of the company to produce quality crops through clean cultivation with an experienced and qualified team driving the raw material space.
During the month of March, music maestro and media guru Gene Simmons was appointed Chief Evangelist Officer by the company. Simmons is expected to lead in the area of public awareness and assist the company to cut a niche market for recreational use of cannabis-related products. He will provide market counsel to the company, serving as a spokesman in the media and participate in the company’s Annual General Meetings. It is hoped that this will increase the company’s visibility and command a huge market share based on his well-established market presence.
The entry of Simmons is after boardroom negotiations which will see Invictus acquire all the issued and outstanding shares of Gene-etics Strains Co. From Gene Simmons for a purchase price of $2.5 million USA payable in cash and issuance of 2,631,141 common shares in Invictus at the closing date and a further 1,973,355 common shares to be issued to Simmons 240 days later after the closure of the agreement.
The company under the stewardship of its Chief Evangelist Officer in mid-March this year opened trading at the TSX Venture Exchange (TSXV). This coincided with the company changing its ticker symbol from IMH to GENE.
Dan Krinzic was quick to note that trading at the TSXV is no mean achievement for the company. It also comes at a time when there are enough stocks for full-scale production to last the next twelve months. The use of the new brand name for trading purposes is a big boost to the overall company image and is likely to attract a wide range of investors that may put their stake in the company due to the known media mogul and music icon. This may also give the company a head-start in its all-out roll-out program in introducing products to consumers.
Currently, the company has over 95,000 square feet of cannabis production capacity at licensed production sites in Canada. Pharms limited which is a wholly owned subsidiary of the company located in West-Central Alberta has 40,000 square feet of cannabis ready production and intends to expand the area under crop to 120,000 square feet by the end of 2018.
Invictus has a 50 percent stake in AB Laboratories (AB Labs) which is also a licensed producer and is located in Hamilton Ontario. AB Labs has a 16000 square foot facility and recently acquired an adjacent facility that will see its production scope expand to 56,000 square foot of cultivation space ready for production by June 2018.
The combined total capacity of Invictus, its wholly-owned subsidiaries, and associated companies stands at 200,000 square feet of cannabis production capacity by end of 2018 but going forward to 2019 the capacity will increase to 520,000 square feet.
Invictus has also bought 82.5% shareholding in Future Harvest Development Ltd which is a high-quality Fertilizer and Nutrients manufacturer based in Kelowna, British Columbia.
Acreage Pharms which is a subsidiary company of Invictus has embarked on an ambitious extraction program to serve Canada’s expanding need for high-quality cannabis oils. The company acquired innovative CO2 oil extraction technologies and has hired key professionals for the program rollout. The system acquired preforms subclinical and supercritical fluid extractions utilizing high-pressure carbon dioxide to extract essential oils from botanical using specific temperatures and pressures to withdraw different components from plants. The innovative process produces very high-quality cannabis oils.
On March 6, 2018, Invictus customers Acreage Pharms received a notification of sales license inspection. This license is the last step prior to the issuance of a sales license under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The receipt of the license demonstrates the firm’s strict adherence to quality and high health standards expected by the Canadian authorities especially at the critical production stage. Acreage Pharms has currently produced 19q kilograms of dried Marianas in stock. Invictus AB Laboratories Inc. received its amendments to sell dried Marianas under the ACMPR in January 2018 which completes the value chain in terms of marketing the existing crop.
Invictus announced that it had acquired 23 new cannabis strains on the 21st day of February this year. This will mark a major milestone as the firm goes into full production capacity and sales. The acquisition broadens Acreage Pharms strain variety in preparation for the recreational market. This new development will allow Acreage Pharm to import genetics including seed and starting materials. Acreage Pharms will be able to offer a variety of strain’s that fully reflect the genetic diversity of cannabis including its many health benefits.
The Final Vote
The Canadian Senate is set to vote on June 7th this year on the Cannabis Act. This represents a positive step towards the final ratification required for cannabis sales to commence. The legalization will remove doubts and give a head-start to those who are already in the space getting the necessary impetus to grow their investment.
This is an industry which is expected to grow at a geometric rate with the projection that it will hit the 50 billion US dollar mark by the year 2025. Invictus will reap big having invested heavily in a team of leading horticulturists, biochemists and project managers. The company is leading in the legal cannabis space and is the company to watch in the coming years
Although not widely tested due to legal restrictions among a host of other limitations Medical Marijuana has been recommended by doctors to patients. Limited evidence shows that cannabis can reduce nausea and vomiting during chemotherapy, improve appetite in people with HIV/AIDS and reduce chronic pain and muscle spasms.
IVITF has been working on different acquisitions to grow. At the moment, they are in the correct industry with Canada being at its current position. With their venture into the cannabis sector, the payoff is expected to come soon.
Disclosure: We have no position in IVITF and have not been compensated for this article.