Invictus MD (CSE:IMH) has announced it has closed an option agreement to acquire up to 60 percent in State of Nevada Medical Marijuana Cultivation License in Las Vegas, Nevada.
As quoted in the press release:
The terms of the Option allow Invictus MD to acquire 10% of the Seller within 45 days after the Seller has obtained its final approval for cultivation from the SNV inspection department. Invictus MD will pay the Seller $150,000 CDN in cash to secure the Option. A preliminary inspection date has been booked for late 2016 and the final cultivation license is expected to be issued in the first quarter of 2017. Upon issuance of the cultivation license, Invictus MD will have the option to acquire a 10% equity stake from the Seller (“First Option”) for $500,000 USD in cash plus $1,725,000 USD in common shares of Invictus MD at an issue price equal to the volume weighted average price (“VWAP”) for the three trading days ending on the trading day prior to the date of delivery of the option exercise notice and converted to USD using the most recent Bank of Canada noon spot rate. The Seller also grants Invictus MD the sole and exclusive option to purchase an additional 50% of the Seller for $16,875,000 USD payable in any combination of cash and/or common shares of Invictus MD. This option will expire 183 days after the closing of the First Option.