Invictus (C.IMH) now sitting on war chest after over-subbed financing

05/26/2015

Mining guys can’t get arrested these days, but the marijuana industry is still raising doughbucks.

Actually, let’s call it herbal services. Invictus MD Strategies does not like to be called a weedco, or a medical marijuana company or even a cannabis play.

It’s a vertical integration play. The sector isn’t relevant, so they say.

Dan Kriznic, formerly of Deloite, is steering the Invictus ship and slurping up unnamed industry-related business, mainly for paper or performance based deals, preserving cash for when it’s needed.

Well it’s a lot less needed now – today the company closed a financing that was hoping to pick up $500k.

Fun story: They got 60% more than that.

My story from Stockhouse this morning:

Dan Kriznic’s Invictus MD Strategies (CSE:C.IMH, Stock Forum) isn’t sexy yet by daytrader standards, but the institutional dough is beating a path to the vertical integrator’s door.

A private placement financing closed today and brought in $813,100, running roughshod over the $500k figure the company sought when it opened the financing.

Some of those investment dollars came from the President and CEO himself, as did more from CFO Kelsey Chin and Director Colin Kinsley, a situation all the more remarkable coming at a price of $0.15 per share, when the market price has fluctuated between $0.11 and $0.14 of late.

$300k of that raise will go toward locking in a stake in Future Harvest, a 20-year Edmonton-based hydroponics and grow supplies outfit that was one of the first companies acquired by Kriznic in a pick-up spree that took in six deals in six months, including Cannabis Health Journal, vaporizer tech outfit Edison Vape, e-commerce portal Smokazon, information referral service Vitaleaf, and grow facility consultants Greener Pastures.

Future Harvest reportedly brings in over $4m in revenues annually.

Invictus has a $6.4m market cap, with 47.2m shares outstanding.

The last two lines in that piece are THE MOST IMPORTANT.

$4m in the door from just one of their six acquisitions (and I hear they’ve got that thing streamlined nicely and hitting record rev levels – word on the street), with a $6.4m market cap.

I honestly don’t pay attention to the C.IMH share price, but when it hits $0.11 or so, I sell something to buy more. Anything under $0.15 is stupid cheap.

Volume isn’t there yet, but one or two revenue-focused press releases will make things very interesting.

Back the horse with the best jockey every time.

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