Invictus MD (CSE:IMH) has closed a previously announced non-brokered private placement of 11,428,571 units for gross proceeds of $12 million.
As quoted in the press release:
Each unit entitles the holder to one common share and one-half warrant exercisable for one additional common share at $1.75 expiring in 18 months. If the closing price of the common share is equal to or greater than $2.75 for a period of ten (10) consecutive trading days, the Company will have the right to accelerate the expiry.
In connection with the private placement, the Company paid finders’ fees to Eventus Capital Corp. of $607,475 and 578,548 finder’s warrants. The finder’s warrants have the same terms as each whole warrant issued in the private placement.
The Company intends to use the proceeds of the private placement to carry out its acquisition strategy including the most recently announced transactions with a cultivation facility in Las Vegas, Nevada as well as AB Laboratories Inc. (“AB Labs”), a licensed producer in Canada under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”).
The Las Vegas, Nevada cultivation facility is owned by GreenTec Nevada Holdings, a subsidiary of the GreenTec Bio-Pharmaceuticals Group. The existing cultivation facility has the capacity to produce 1,250 kg’s annually. The expansion plan has the potential to reach 2,500kg annually.
AB Labs is currently working on an expansion plan through AB Farms Inc. (“AB Farms”) to acquire 100 acres in Hamilton, Ontario for cannabis cultivation under the ACMPR. Invictus MD has agreed to provide the required capital to fund the purchase of the land and the construction of the buildings related to this expansion plan. The expansion of AB Farms will enable the company enough expansion capacity to compete with the current top tier Licensed Producers.