Invictus MD Strategies Corp. has entered into an investment agreement for the sale of its wholly-owned subsidiary, Acreage Pharms Ltd. The purchaser is Acreage Developments Corp., a privately-owned company that is unrelated to the Company and its directors and officers.
Completion of the sale is subject to condition precedents including Court approval of the transaction and a plan of compromise and arrangement (the “Plan”) being approved by the creditors of Acreage and the Court in the CCAA proceedings currently underway involving the Company and its subsidiaries. As part of the transaction and Plan, all existing shares of Acreage will be cancelled and new shares issued to the Investor. As a consequence, the Investor will be the sole shareholder of Acreage, and it is not anticipated that the sale will result in any recovery for creditors or the common shareholders of the Company. Recoveries will be limited to the creditors of Acreage.
The Company anticipates that it will shortly file a motion for a court order to present the Plan to the creditors of Acreage and subject to receiving certain approvals, plans to seek a sanction order from the Court approving the implementation of Plan. Details of the sales process that was undertaken will be available then.
The Company continues to seek buyers for its remaining assets and is in discussions with parties regarding a potential transaction. There can be no assurance that the transaction with the Investor will be completed, that the creditors or the Court will approval the Plan or that any transaction involving the remaining assets of the Company will eventuate.
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. For more information visit www.invictus-md.com.