Invictus MD Strategies Corp., the Vancouver-based cannabis and specialty fertilizer company, announced on Jan. 15 that it will not be pursuing a merger with GTEC Holdings Ltd., a vertically integrated cannabis cultivation company headquartered in Kelowna, B.C. The two companies signed a non-binding letter of intent (LOI) last November to pursue a merger, but both have agreed to terminate the LOI.
Invictus and GTEC will continue working together under an LOI signed last August, however, under which Invictus agreed to invest up to $2 million in GTEC to help the company develop and expand its retail strategy in Western Canada and Ontario. The LOI also gave Invictus the right of first refusal to fill up to 30 percent of any domestic or international cannabis purchase orders sought by GTEC or its wholly-owned subsidiaries from third-party licensed producers for a two-year period.
“Invictus is continually aiming to realize its vision of building a global cannabis company anchored on its Western Canadian roots, with a focus on satisfying patients’ and consumer’s needs in the medical and recreational markets, respectively” said George E. Kveton, president and CEO of Invictus. “We look forward to maintaining and further increasing our strong, strategic partnerships with companies like GTEC to support our five pillars of distribution, including medical, recreational, international, Licensed Producer to Licensed Producer, and retail.”
GTEC describes itself as a specialized craft cannabis company dedicated to cultivating premium quality cannabis in purpose-built indoor facilities. The company announced last year that it planned to open a minimum of 15 Cannabis Cowboy retail stores in Alberta by Oct. 17, 2018, along with one location in Saskatchewan.
“We look forward to continuing down the path of GTEC becoming one of Canada’s leading premium focused and vertically integrated cannabis companies, while maintaining a strong working relationship with the Invictus team” said Norton Singhavon, GTEC founder, chairman, and CEO. “2019 will prove to be an instrumental year for GTEC as we continue to execute on our vision and strategy within the premium cannabis market in Canada.”
Invictus’ holdings (GM June 30, 2017) include a 100 percent ownership of cannabis cultivator Acreage Pharms Ltd., located in West-Central Alberta, and a 50 percent investment in AB Laboratories Inc., Hamilton, Ont., which has its cultivation and sales license under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR). In addition to ACMPR licenses, Invictus has an 82.5 percent investment in Future Harvest Development Ltd., a fertilizer and nutrients manufacturer based in Kelowna.