Invictus MD (GENE.V) is having an outstanding October

There are good months and then there are good months. Invictus MD (GENE.V) is having the latter with a jam-packed October which saw the company’s reach and capabilities grow sizably.

Last Thursday, the company began finalizing its acquisition of Leaf Wise, a company which operates medical cannabis clinics throughout Alberta.

Leaf Wise has roughly 3,400 registered patients on its books under ACMPR guidelines which Invictus MD will soon be providing with medical cannabis.

Leaf Wise will serve as an important agent of Invictus’ medical distribution channel, helping to foster long-lasting relationships with patients, while alleviating a potential burden for Alberta’s public healthcare system.

Medical cannabis has much higher profit margins than recreational cannabis, according to industry insiders.

The acquisition of Leaf Wise is only one part of Invictus MD’s five-pronged distribution strategy:

  1. Medical cannabis will be distributed through business to customer sales as permitted through the ACMPR
  2. Recreational cannabis will be distributed through supply agreements with Provincial liquor boards
  3. International partnerships such as the LOI signed in June with a German importer and distributor of medical cannabis
  4. LP to LP partnerships which will maximise the reach of distribution networks
  5. The establishment of retail stores throughout Western Canada

Invictus teams up with GTEC Holdings

To establish itself in Western Canada, Invictus MD announced its definitive partnership with GTEC Holdings (GTEC.V) On October 19 to fund the establishment of dispensaries throughout Western Canada.

Invictus MD has agreed to initially contribute up to $2 million for the construction of dispensaries under GTEC Holdings’ Cannabis Cowboy dispensary chain. GTEC Holdings owns 25 percent of Cannabis Cowboy.

From GTEC Holdings’ investor deck

The Definitive Agreement provides Invictus with a Right of First Refusal (“ROFR”) to fill up to thirty percent (30%) of any third-party supply agreement that GTEC, or its subsidiaries, has for the supply of cannabis flower or oil, whether domestic or international, for a period of two years from the date that GTEC, or one of its subsidiaries, receives its first Sales License from Health Canada.

Invictus MD announced it had advanced GTEC Holdings the $2 million loan on October 23. If necessary, both parties can agree to increase the loan to $6 million.

Dan Kriznic, chairman and CEO of Invictus MD, praised GTEC Holdings, saying it had “successfully executed one of the most robust retail strategies in Western Canada.”

GTEC Holdings aims to  establish at least 35 dispensaries throughout British Columbia, Alberta and Saskatchewan.

The tale of ‘OptionCo’

Invictus MD is also expanding its own cultivation capabilities. Back in May, Invictus MD announced the signing of a binding LOI which gave it the option to acquire a then late-stage ACMPR applicant called OptionCo.

OptionCo has two British Columbia-based properties in its portfolio. The first is a pharmaceutical-grade cannabis production and research facility in Delta and the second is in Mission.

Invictus MD maintains the option to acquire OptionCo 30 days after the company’s Delta property received its cultivation license. Additionally, part of the option agreement included a $10 million investment by Invictus MD into the development of OptionCo’s Mission property.

Earlier this month, OptionCo’s Delta facility received its cultivation license under the ACMPR. If Invictus MD chooses to exercise its option, it the Delta facility will be the company’s third licensed cultivation facility.

The scope of Invictus MD’s cultivation operations in Ontario, Alberta and BC

OptionCo’s Mission property is located on 32 acres of buildable land, is eligible for wholesale energy prices of $0.05/KwH and was awaiting the construction of a 50,000 square foot pharmaceutical grade purpose-built indoor facility back in May.

Today, the facility is currently awaiting construction of a 350,000 square foot build-out.

“This is a significant milestone for Invictus as we round out our ACMPR licenses through out the country. OptionCo will give us a significant footprint in British Columbia already adding to our large footprint in Alberta and Ontario,” the CEO of Invictus MD, Dan Kriznic, said.

Invictus MD is making real strides to expand the scope of its patient lists and cultivation facilities. Combined with its concrete strategy to carve out market share in Western Canada through the Cannabis Cowboy dispensaries, Invictus MD is making a serious run.

Full disclosure: Invictus MD and GTEC Holdings are Equity Guru marketing clients.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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