Tickers: XCNQ:IMH, PINX:IVITF
Tags: Medicinal Marijuana
Vancouver, BC / TheNewswire / November 30, 2015 - INVICTUS MD STRATEGIES CORP. ("Invictus MD" or the "Company") (CSE: IMH; OTC: IVITF; FRA: 8IS) announces that it has sold its interest in Cannabis Health Sciences Inc. ("Cannabis Health") and Focus Distribution LLC, operating as Smokazon.com ("Smokazon") effective November 30, 2015 (the "Closing Date").
Dan Kriznic, President and CEO commented, "When I founded this Company in December 2014 the vision was to raise capital and deploy it by acquiring various companies that are both horizontally and vertically synergistic. Almost one year later we shifted the vision to focus on two of our key assets including Future Harvest Development Ltd. and Edison Vape Co. Ltd. We pride ourselves on being a very nimble organization that keeps a pulse on industry economics at all times. We are quick to make necessary decisions that have a positive impact on our shareholders which has resulted in the sale of Cannabis Health and Smokazon. Going forward our goal is to spin out Future Harvest into a new public company. Following completion of the spin out, Invictus MD intends to change its name to Edison Vape Co. to reflect the core asset remaining. This will allow us to focus time and capital independently to Future Harvest and Edison and provide shareholders with an investment in two segregated assets. The management of day to day operations in these two companies are independent making this a seamless transition. We will continue to oversee both operations as we continue to build shareholder value."
Under the terms of the agreement, the Company has sold 100% of its shares in Cannabis Health to an arm's length party (the "Purchaser") in exchange for $275,000 consideration consisting of $25,000 cash and $250,000 in deferred advertising. Invictus MD will also receive a 3% perpetual royalty based on gross sales generated by Cannabis Health to begin 12 months after the Closing Date.
In the event of a subsequent sale by the Purchaser, the royalty agreement will terminate and the Company will be entitled to receive the following cash payment:
-50% of the gross proceeds generated by the Purchaser for a period of 18 months from the Closing Date; and
-25% of the gross proceeds generated by the Purchaser thereafter, terminating 10 years from the Closing Date.
Sale of Smokazon
Under the terms of the agreement, the Company has sold its 35% interest in Smokazon to an arm's length party in exchange for consideration of $95,000 USD to be payable monthly (the "Payout"), beginning on the 18th month from the Closing Date. The Payout will be subject to Smokazon achieving certain gross monthly sales revenues and the Payout will be based on a range from 15% to 25% of the monthly net revenue.
About Invictus MD Strategies Corp.
Invictus MD targets companies with proven brands, strong customer focus, and significant growth potential. We not only provide capital to meet these objectives but also years of management experience from a team that has been successful in all facets of business from start-ups to running large international organizations. The fundamental core of our operations is centered on the vast opportunities within fragmented industries.
Invictus MD works in partnership with management teams to increase shareholder value through business planning and process integration, developing and executing growth strategies, leveraging our experience and relationships, and structuring and deploying the proper capital to support long-term growth. Our prudent approach to both investing in and developing successful companies ensures successful execution of the business plan in both times of economic expansion and contraction.
For more information please visit www.invictus-md.com.
On Behalf of the Board,
Chairman & CEO
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information, also referred to below as forward-looking statements, is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, the completion of the proposed spin out of Future Harvest. There can be no assurance that such statements will prove to be accurate and actual results and future events may vary from those anticipated in such statements. The forward-looking statements in this news release were developed based on certain assumptions, factors and expectations of management, including that shareholder approval and any required regulatory approval to the intended spin out will be obtained. Important risk factors that could cause actual results to differ materially from the Company's plans or expectations include the risk that shareholder approval and any required regulatory approval to complete the spin out will not be obtained. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
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