Invictus MD Strategies Corp. (TSXV:GENE) drives sustainable long-term shareholder value through a diversified product portfolio
SmallCapPower | November 15, 2018: Invictus MD Strategies Corp. (TSXV:GENE), established in 2014, is an international cannabis company offering several products under a wide range of brands. The Company follows an integrated sales approach anchored on five pillars of distribution, including medical (medical cannabis via business to customer sales, as permitted by the ACMPR), adult-use (sales agreements with government agencies to supply the adult recreational market in Canada), international (distribution agreements beyond Canada, beginning with Germany in 2019), licensed producer to licensed producer (working together with other LPs to tap into their distribution channels) and retail stores (partnerships in Western Canada). Invictus MD Strategies is one of the many exciting cannabis companies presenting at the New Green Frontier Cannabis Conference on November 19, 2018. Investors can sign up for the free webcast or register to attend in person here.
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Invictus MD Strategies Corp’s portfolio of cannabis cultivators include Acreage Pharma Ltd. (100% stake; based in West-Central Alberta), AB Laboratories Inc. (50% stake; based in Hamilton, Ontario), AB Ventures Inc. (33.3% stake; based in Hamilton, Ontario), and Future Harvest (82.5% stake; based in Kelowna, British Columbia). The total production facility has 55,200 sq. ft. area presently and will reach 714,000 sq. ft. by January 31, 2020. Overall, the Company’s production profile is expected to grow strongly to 15,700 kg in FY 2019 and reach 57,300 kg in FY 2020, from current capacity of 2900 kg.
Invictus MD Strategies Corp’s licensed producers have supply agreements in British Columbia and Alberta and are working towards securing supply agreements and product calls across Canada. Invictus MD Strategies is pursuing large-scale and smaller craft agreements on the back of its marijuana production capabilities.
Invictus MD Strategies has collaborated with New York-based brand development, marketing, and entertainment company, Authentic Brands Group (ABG), for launching a collection of lifestyle-inspired cannabis brands. ABG’s brands have a retail footprint that spans the luxury, specialty, department store, mid-tier, and e-commerce channels and more than 4,400 branded freestanding stores and shop-in-shops worldwide.
Additionally, Invictus MD Strategies has partnered with GTEC Holdings Ltd. (TSXV:GTEC) to fill up to 30% of any cannabis PO that GTEC is seeking to buy from a third-party licensed producer for a period of two years. In fact, GTEC is aggressively following a cannabis expansion retail strategy across Canada and expects to have at least 11 Cannabis Cowboy retail stores open in Q4 2018, in Alberta with additional 14 locations to be opened in Q1 2019. In Saskatchewan, GTEC anticipates both the warehouse and e-commerce platform to be operational in Q4 2018.
By following a multi-dimensional distribution strategy coupled with partnerships with other firms, Invictus MD Strategies drives sustainable long-term shareholder value through a diversified product portfolio with over 69 Health Canada approved strains. Invictus MD Strategies Corp’s association with KISS band member Gene Simmons, and his marketing prowess, is a definite plus in an industry where branding will be crucial to a company’s long-term success. Invictus MD’s stock currently trades at a market capitalization of $138 million with a price-to-book multiple of 1.22x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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