Vancouver, B.C., Feb. 13, 2020 (GLOBE NEWSWIRE) -- Invictus MD Strategies Corp. (TSXV: GENE; OTCQX: IVITF; FRA: 8IS2) (the “Company”) announced that on Thursday, February 13, 2020, the Supreme Court of British Columbia (the “Court”) issued an order granting the Company’s application for creditor protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”). The order also extends protection to Greener Pastures MD Ltd., Acreage Pharms Ltd. (“Acreage”), and 2015059 Alberta Ltd. (together with the Company, the “Invictus Group”).
The Company sought creditor protection for the Invictus Group to stabilize its business, pursue strategic alternatives and address near term liquidity issues as a result of a demand and a notice of intention to enforce security received by Acreage (the primary operating entity of the Invictus Group) from its secured lender ATB Financial. The total amount demanded was $10,618,207.95, together with legal and professional fees, premium, make-whole, costs, charges, disbursements and expenses incurred by ATB Financial.
In accordance with the initial order granted in the CCAA proceedings, ATB Financial, and all other creditors, are stayed from enforcing against the Invictus Group. The Court appointed PricewaterhouseCoopers Inc. to serve as monitor in the CCAA proceedings.
After reviewing a number of options and careful consideration of all available alternatives following thorough consultation with its legal and financial advisors, the Board of Directors of the Company determined that a CCAA proceeding was the most effective way to maximize stakeholder value, to address short-term liquidity challenges and continue to operate the business. While in CCAA protection, the Invictus Group will continue its normal day-to-day operations and plans to commence a review of strategic alternatives in the immediate future.
The Company also announced that Marc Ripa, Interim Chief Executive Officer of the Company, has resigned as Interim Chief Executive Officer and Chief Operating Officer of the Company and any of the Company’s subsidiaries, effective at the close of business on Friday, February 14, 2020. Mr. Ripa will remain as a member of the Company’s Board of Directors to assist with a transition. The Board of Directors of the Company has not yet appointed a replacement for Mr. Ripa as Interim Chief Executive Officer.
The Company intends to provide a further update on these matters when more information is available.
For further information
Harbir Toor
Chief Financial Officer
Phone: 236-788-8134
Email: HToor@invictus-md.com
Investor Relations 1‐844‐800‐6086
E‐Mail: connect@invictus‐md.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information regarding the Company’s CCAA proceedings
A copy of the Initial Order and other information will be available on the monitor’s website at www.pwc.com/ca/invictus.
Additional enquiries for the monitor may be directed to PricewaterhouseCoopers Inc. in its capacity as Court-appointed monitor of the Invictus Group:
Kiran Chahal
Phone: (604) 806-7787
Email: kiran.k.chahal@pwc.com
About Invictus
Invictus is a global cannabis company with a focus on the Canadian cannabis space, offering a selection of products under a wide range of cannabinoid profiles that fit the demand of the Company’s medical clients and retail customers. The Company’s integrated sales approach is defined by five pillars of distribution including medical, adult-use, international, Licensed Producer to Licensed Producer and sales to provinces.
To meet growing demand, Invictus is expanding its cultivation footprint with two cannabis production facilities licensed under the Cannabis Act, which replaced the Access to Cannabis for Medical Purposes Regulations in Canada. Invictus’ wholly-owned subsidiary Acreage Phase I and Phase II facilities are in full production. Acreage has received the amendment to their license from Health Canada to include the west wing of the Phase III facility. AB Laboratories Inc., a company which is a 50% owned subsidiary of Invictus has completed its Phase II expansion and received its amended license from Health Canada. Another of Invictus’ wholly owned subsidiaries, 2015059 Alberta Ltd. (dba Leaf Wise), continues to connect medical clients to physicians for medical cannabis and to Invictus’ fully licensed cannabis producers under the Cannabis Act. Invictus is targeting up to 50 percent of production to medical cannabis. Invictus drives sustainable long-term shareholder value by continuing to develop Invictus’ Canadian production of medical and recreational cannabis products. For more information visit www.invictus-md.com.
Forward Looking Information
This news release includes certain statements and information that may constitute forward-looking information and statements within the meaning of applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of the words “will”, “continues”, “anticipates” and “intends” and variations or similar expressions which include, but are not limited to, statements relating to the CCAA application and proceedings; operations of the Company; strategic review; liquidity of the Company and appointment of a new Interim Chief Executive Officer.
Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or result, changes in the CCAA proceedings or otherwise, except as required by applicable laws.