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Mr. Kriznic went on to elaborate of further potentially synergistic relationships that might strengthen some of the Companies other verticals. "This is a triumphantly pivotal point for Invictus and its shareholders. Breaking ground into the ACMPR has always been our intention since inception; however, partnering with the right team has held us back until today. After meeting, discussing and conducting our due diligence on over five licensed producers, we are pleased to announce this partnership with AB Labs. The fact that they are a wholly owned subsidiary of AB Fertilizers, which manufactures mineral-based fertilizers within the hydroponic industry, will definitely pave the way for possible future alliances between AB Fertilizers and Future Harvest Development. When both parties met, we both knew that this would be a great fit immediately."
On December 29, 2016 Invictus closed the acquisition of 33.33% of the shares of AB Laboratories Inc. and the initial acquisition of shares of AB Ventures Inc., just over a month after signing a binding LOI to acquire the Health Canada Licensed Producer. AB Laboratories is licensed for cultivation under the Access to Cannabis for Medical Purposes Regulations (ACMPR) and maintains a 16,000-square-foot facility located in Hamilton, Ont. The company paid $5M and issued 2,400,000 common shares to the vendor at closing, with a further $2M in cash due in 90 days. The total aggregate value of the transaction was $17.25M CAD based on Invictus’s Nov. 17, 2016 closing price. This is another deal that gives great upside for Invictus and its shareholders for several reasons:
-The price of the assets are valued relatively cheap compared to other similar transaction in the space.
-Invictus retains a ROFR (Right Of First Refusal) on any future share purchases, financings, and build outs.
The ability to pull this transaction off in the highly competitive Canadian MJ industry speaks volumes for Invictus the Company, the management and the people working tirelessly behind the scenes.