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Wednesday, April 19, 2017

Getting In On Canada’s $30 Billion Marijuana Boom

A new commodity boom is coming to Canada. And this time, it is going to be a green rush.

Marijuana is expected to be legalized in the country this year. And the market could be worth nearly $23 billion or more annually.

The clock started ticking in April 2017. That’s when new legislation legalizing the recreational use of marijuana in Canada will be introduced. If approved, the law is anticipated to go into effect on July 1, 2018.

While other companies will be scrambling to catch up, one company has been quietly preparing to meet Canada’s appetite for cannabis. Invictus MD (TSX:IMH.V; OTC:IVITF)—has been building a diversified cannabis company. And it is ready to capitalize on Canada’s newest cash crop.

Fulfilling a Cannabis Campaign Promise

Legalizing marijuana was one of Canadian Prime Minister Justin Trudeau’s most controversial campaign promises. It helped him win the youth vote in the 2015 election.

Under the bill’s provisions, the country’s federal government will oversee supply and licensing of marijuana. Canada’s provinces would then decide how marijuana should be distributed and sold. Provinces will also set prices.

Canada’s pending marijuana legalization at the federal level isn’t much of a surprise to the country’s citizens. But investors have mostly ignored this important cannabis milestone.

Instead, cannabis investors have set their sights on the U.S. market and state marijuana mandates.

Delivering High Returns

Marijuana legalization has been minting millionaires for years. And 2016 was another lucrative one for American marijuana investors.

Medical Marijuana, Inc. (OTCBB: MJNA) was a massive winner in 2016. Shareholders of the pot stock pocketed over 412 percent in 2 months.

But that isn’t even the most impressive gain.

The share price of American Cannabis Co. (OTCBB: AMMJ) sky-rocketed during 2016. Its stock rose an astonishing 1,610 percent in just a few short months.

But these triple digit returns are becoming harder and harder to come by in the U.S. The cannabis bull market has stalled. It may even be dying.

That’s because U.S. Attorney General, Jeff Sessions has publicly opposed state marijuana legislation. Since marijuana has not been legalized at a national level, he’s even hinted at enforcing federal laws in states where marijuana is currently legal.

Until now, investors have largely ignored Canada’s cannabis opportunity. But that’s about to change.
Very soon, these investors will look north of the border to find their next cannabis cash cow. By then, the next Canadian marijuana bull market will have already begun to heat up. And when it does, it will likely be bigger than the U.S. run was.

A Budding Multi-Billion Dollar Industry

If the U.S. federal government decides to roll back state marijuana laws, U.S. marijuana market growth will undoubtedly slow. The $50 billion in sales that some have projected won’t be met. Worse, the market may even shrink.

But since Canada is legalizing cannabis at a national level, Canadian marijuana companies don’t face the same risks as their American peers. And the Canadian market is still a massive one.

A new study suggests that legalized recreational marijuana could create a $22.6 billion industry in Canada. Marijuana sales could top those of beer, wine and spirits combined. By 2021, there could be more than 3.8 million recreational marijuana users in the country.

That’s more than three times the $6.7 billion dollars of marijuana sales recorded in the U.S. during 2016.

That same study calculated that the Canadian retail marijuana market alone could be worth as much as $8.7 billion a year. And the ancillary market, including growers, fertilizers, testing labs, security and infused products, would generate annual sales of nearly $14 billion.

Add in marijuana-fueled tourism and these estimates could prove to be too low.

The total market will be huge, and Invictus MD (TSX:IMH.V; OTC:IVITF) has a first mover advantage to capture a significant portion of it.

Multiple Profit Channels

Founded in 2014, Invictus MD has spent the last three years creating an integrated cannabis company. And it’s positioned itself to be the first to market on several fronts.

Since it is still in its infancy, the sector is highly fragmented with many small players. Rather than inventing a cannabis business, Invictus MD is perfecting it.

Invictus MD was designed to roll-up the most promising marijuana industry businesses. It now focuses on licensed producers in Canada.

Today, the company’s businesses focus on two verticals: cannabis cultivation and cannabis fertilizer and supplies. This way, the company profits from the coming green rush by selling cannabis as well as from supplying “picks and shovels” to other marijuana prospectors.

Production and Cultivation:

In December, Invictus MD announced that it had reached an agreement to acquire a 33.33 percent stake in AB Laboratories Inc., a Licensed Producer under the Access to Cannabis for Medical Purposes Regulations (ACMPR) and a 33.33 percent stake in AB Ventures Inc. AB Ventures Inc. is a newly incorporated company formed to develop a second licensed expansion facility on 100 acres in Hamilton, Ontario.

Based in Hamilton, Ontario, AB Laboratories owns facilities that grow marijuana. It received its cultivation license on October 21, 2016. The company expects its sales license to be issued during the second quarter of this year.

AB Ventures will close on its 100 acres of expansion land on May 1, 2017 at which time a 42,000 square foot cultivation facility will be built. Plans are in place to rapidly expand on that property once it receives its license to cultivate. AB Ventures/AB Labs is expected to grow its cannabis production capacity by 1900 percent in two years - from 1,000 kg in 2018 to 20,000 kg in 2020.

But AB Ventures/AB Labs isn’t Invictus MD’s only bet on the marijuana farm. Invictus MD (TSX:IMH.V; OTC:IVITF) will also exercise the option to acquire Acreage Pharms within 30 days of March 29, 2017, after which they will own 100 percent. Its potential cultivation capacity is even larger than AB Ventures/AB Labs.

Acreage Pharms has a 150-acre property able to accommodate a three-phase expansion plan. It received its ACMPR cultivation license March 29, 2017.

Under its three-stage expansion plan, Acreage Pharms plans to increase its cannabis cultivation from 3,000 kg in 2018 to 25,000 kg in 2020.

Upon completion of all Invictus MD’s expansion plans, the company will have the capacity to cultivate and sell in excess of 50,000 kg of cannabis. That will make Invictus MD one of the top producers in Canada.

And Invictus MD’s large geographic footprint gives it another advantage over the competition. Its cultivation facilities are spread across Canada. This enables the company to become a country wide cannabis supplier while significantly lowering its distribution costs.

Assuming an average selling price of $5 per gram, Invictus MD’s cultivation businesses could be generating annual sales of $350 million by 2020.

Today the market values Invictus MD at just a fraction of its future market co-leader. But Invictus MD isn’t merely a marijuana grower. It’s a marijuana grower supplier as well.

Fertilizer and Supplies

Future Harvest is Invictus MD’s cannabis fertilizer and supplier vertical. The 20-year old company was Invictus MD’s first acquisition.

Invictus MD (TSX:IMH.V; OTC:IVITF) acquired 82.5 percent of Future Harvest in February 2015. Future Harvest manufactures and distributes fertilizer and other products to the hydroponic and indoor growing industry.

Supply cannabis cultivation supplies is a high margin business. Especially since 95 percent of the products that Future Harvest sells are its own.

And the business is getting more profitable. During the seven months ending on January 31, 2017, Future Harvest reported that its gross profit margin was 51 percent - up 63 percent from the prior year’s same period of 33 percent.

But enviable margins aren’t the only way Future Harvest is benefiting Invictus MD and its shareholders.

A Cannabis Company First

Invictus Inc. paid $900,000 for its stake in Future Harvest - Sunblaster. In February 2016, the company announced it had sold Future Harvest’s Sunblaster grow lighting line for $5 million of which Invictus MD’s portion was $3.75 million. The sale netted Invictus MD a 316 percent return on its investment in just 11 months.

The company drove most of the proceeds of the Sunblaster sale back into Future Harvest. Invictus MD spent money on research and development, next to this, it acquired bottling equipment to further increase its fertilizer revenue.

Besides all expansion and R&D activities, Invictus MD also rewarded its shareholders. The company declared a $1 million dividend in November. It was one of the first, if not first ever dividend payment made by a marijuana company. The dividend was approximately $0.07 per share.

Seasoned Management Team Navigating an Emerging Industry

The legal marijuana industry is a new one. It’s highly fragmented with many small businesses attempting to create a new business model.

Most of these marijuana pioneers have little business experience and their profitability has suffered. But Invictus MD’s management team combines the best of both worlds. The company is led by seasoned business executives and cannabis experts.

Dan Kriznic, Founder and CEO

CEO Dan Kriznic is a proven and seasoned entrepreneur. He founded Invictus MD in 2014 to meet Canada’s demand for legal cannabis.

He’s built several successful businesses from the ground up. One of his most successful is Eminata Group, Canada’s largest private education and training provider.

He has also helped develop companies in the real estate, mining and senior care sectors. Under his watch, these companies have grown from nominal to over $750 million in enterprise value.

A CPA, Kriznic, adds a unique blend of financial as well as strategic acumen to the Invictus MD team.

Phillip Hague, Chief Scientific Officer and Horticulturalist

Phillip Hague is Invictus MD’s Chief Scientific Officer and Horticulturist. He joined the company in late 2016 and is responsible for expanding Invictus MD’s production capacity.

A leading expert in the cannabis industry, Hague has overseen over 1 million square feet of cannabis cultivation space in the U.S. He has designed, built and staffed some of the largest cultivation facilities in the U.S.

Hague has developed many of the most successful brands in the cannabis industry and his expertise is often featured in the media as well as industry publications.

An Undiscovered Marijuana Innovator

Legalized marijuana is coming to Canada. And Canada’s cannabis business is primed to become the largest in North America.

Largely ignored by investors, Canada’s cannabis market is about to come under the spotlight. The April 10th introduction of the bill to legalize recreational marijuana was the start. As the legislation moves closer and closer to becoming law, interest in Canada’s new industry will reach new highs. And early investors will have the chance to pocket big gains.

Invictus MD’s multi-channel cannabis model allows it to profit from both sides of the cannabis market.

It is building the facilities that will make it one of the largest in Canada. Sales could reach $350 million by 2020 – seven times Invictus MD’s current market cap.

At the same time, it’s solidifying its position as a preferred cultivation supplier selling the fertilizer and other products necessary for cultivating Canada’s newest cash crop.

2017 is shaping up to be a historic year for Canada’s cannabis companies. Multiple catalysts including approval of the new law and cultivation licenses issuances will drive investor interest in the sector.

Few investors have recognized the coming green rush in Canada, but they will. And it won’t be long until they see that Invictus MD (TSX:IMH.V; OTC:IVITF) has built a company primed to profit from it.


This communication is not a recommendation to buy or sell securities.

This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our group newsletter and on our website may be based on end-of- day or intraday data.

Monday, April 17, 2017

Big Investors Backing A Marijuana Boom In 2017

Some of the biggest marijuana stocks in the U.S. have seen 1,000 percent gains over the past couple of years, and now it is Canada’s turn — where no one’s even looking.

Here, the minting of millionaires is going to be huge. Not only is medical marijuana already legalized across the country, but the Canadian government is preparing to introduce legislation in April 2017, fully legalizing the recreational use of cannabis by July 1st 2018.

Canadian small-cap Invictus MD (TSX:IMH.V; OTC:IVITF)—the FIRST licensed medical marijuana company to pay a dividend to shareholders—is set to make huge additional gains.

Here’s why:

• Legal cannabis is sweeping the nation
• The cannabis market is BIGGER than the combined sales of beer, wine and spirits.
• Canadian cannabis stocks won’t be cheap for long
• Canada’s first Marijuana ETF will soon launch... bringing even more attention to the sector

And there’s no province-by-province uncertainty in Canada—medical marijuana is federally legal, and in mid-April, the government is planning to put through its bill to legalize recreational use by next summer, so the urgency for investors is mounting.

You need to prepare now... before this happens.

It’s an industry Deloitte estimates could be worth $22.6 billion annually—again, this is far more than the combined sales of beer, wine and spirits.

Right out of the gate, Invictus MD, one of only 41 licensed producers, has demonstrated that it will lead the way. The company managed to raise CAD$12 million in only 6 hours in its latest offering, meaning it is cashed up and already generates dividends for shareholders.

Here are 5 Reasons to keep a close eye on Invictus MD (TSX:IMH.V; OTC:IVITF)—‘Canada’s Cannabis Company’:

#1 Nothing Beats Marijuana Stocks Right Now

Nothing moves a product out of the dustbin like legalization—and even better when it’s federal. Marijuana stocks have skyrocketed over the past year, with the seven largest ‘green giants’ soaring on the philosophy of a brand new world.

The shares of the medical marijuana producers more than tripled last year.

• AXIM Biotechnologies (NASDAQOTH:AXIM): exploded 1,720 percent
• Corbus Pharmaceuticals (NASDAQ:CRBP) was up 431 percent
• Aphria (NASDAQOTH:APHQF) grew 381 percent
• Aurora Cannabis (NASDAQOTH:ACBFF) was up 299 percent
• Canopy Growth Corp. (NASDAQOTH:TWMJF) up 259 percent
• Medical Marijuana (NASDAQOTH:MJNA) up 254 percent
• GW Pharmaceuticals (NASDAQ:GWPH) was up 64 percent

The smart money is investing too. Tribeca Investment Partners, a boutique fund manager, used bets on marijuana companies to help generate a 145 percent return over the year, according to Fortune magazine and Bloomberg. Nearly US$20 million of its investment gains in 2016 came from marijuana stocks, including Aurora Cannabis and Canopy Growth.

Things are about to explode even further with the launch of the first marijuana exchange-traded fund (ETF) in Canada, giving diverse exposure to this tantalizing sector. The Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ) will launch on the 4th of April on the Toronto Stock Exchange with 11 Canadian-listed stocks and four U.S.-listed stocks.

The frenzy surrounding Canada’s marijuana market is palpable, and will be even more frenzied with the looming recreational legalization bill.

This puts Invictus, which already has a license to produce, directly on the front line of a multi-billion-dollar market that promises massive new demand and very tight supply.

#2 The Right Acquisitions at the Right Time

Invictus MD (TSX:IMH.V; OTC:IVITF)—has an impressive head start on a market set to explode, with multiple projects in its Canadian investment pipeline. And it’s all about acquisitions.
The company’s dream team targets small- and mid-size companies with significant growth potential and directs their strategies towards profitability.

Recently, they’ve made some game-changing acquisitions at just the right time on the Canadian marijuana market: In total, these acquisitions were negotiated at a combined CAD$52 million, which is far less than the valuation of Invictus MD peers. In short; They are “cornering” the market at a low entry point.

The company owns over 33 percent in AB Laboratories Inc., which received its cultivation license last October. The catalysts here are mounting, with the sales license expected in Q2. This facility is already licensed for 100 kilograms and has a capacity for 1,000 kilograms, with active expansion plans underway.

Invictus MD is also in the process of closing its acquisition of 100 acres with AB Ventures Inc., and is targeting production here of 25,000 kilograms by 2020.

In Alberta, Acreage Pharms received its license to cultivate under ACMPR and has a purpose built 7,000 square foot facility and a 30,000 square foot expansion plan with an option to add a 20,000 square foot mezzanine. Invictus MD will own 100 percent of this project within 30 days of March 29, 2017.

It’s a brilliant set-up for a small-cap company with CAD$15.5 million in cash and 38 million basic outstanding shares.

#3 This is a Shareholder’s Dream

Invictus MD (TSX:IMH.V; OTC:IVITF)—made history right around Christmas by becoming, to our knowledge, the first marijuana producer in history to pay its shareholders a dividend. Why? Because “it made sense to give back to our shareholders who supported us”, according to Chairman and CEO Dan Kriznic.

It’s also why Kriznic himself has been rated one of Business in Vancouver’s ‘Top 40 under 40’.
The combination of smart and well-known management and the frenzy in Canada over marijuana has helped Invictus MD secure nearly CAD$30 million in the last four months. The first raise was CAD$12 million at $1.05, and the second was $16.2 million at $1.65.

Right now the company has a funded production capacity of about 10,000 kilograms which, compared to its peers, suggests Invictus MD is significantly undervalued.

Let’s put it another way: Invictus MD’s market cap to funded capacity is about 5 times the industry standard.

Prior to October, when it entered the license producer market, Invictus MD was busy acquiring all the ‘picks and shovels’ of the cannabis space. Invictus MD has made one smart move after another, and it’s always the ‘pick and shovel’ guys who have real longevity. First they acquired a fertilizer company that was cash-flow positive, and then they sold one of its lighting divisions for $5 million, having paid only $900,000 for it less than a year before. That’s how they managed their first shareholder dividend.

The No.1 Marijuana Stock For 2017

Canada’s Cannabis Boom is creating a $30 Billion Investment Opportunity for investors and this small company could explode upwards in the next few weeks as investors start to flock to the space.

They’ve been nurturing their shareholders along with their crops. Invictus MD’s focus on two verticals—cannabis cultivation and cannabis fertilizer and nutrients—gives it a competitive, low-cost advantage on this playing field.

Now they’ve got prime real estate to add to their portfolio, and this is one cash crop that’s going to keep growing.

#4 Savvy Management on the Market Fast Track

Invictus MD is on the fast track to the market, with many strains already approved by the Canadian health authorities.

And these strains reach in to every market. Those include high THC strains used to help with pain management and cancer, and high-CBD strains used for epilepsy and anxiety disorders. And when it comes to recreational—the company is gearing up to work on all strains available.

This combined with its tight capitalization structure and access to capital make this a prime breakout target over the coming weeks and months.

They’re also not new to this game. Invictus MD isn’t just jumping on the green train at the 11th hour; it has been laying the ground work for a very smart expansion strategy.

Kriznic has turned $10-million companies into $150-million annual revenue generators. They’ve got a license to grow in more ways than one, and while they might not be a ‘green giant’ just yet, their undervaluation suggests they could be.

#5 Massive Demand, Unleashed

The fundamentals are clear—demand is set to further explode once recreational use of cannabis becomes legal.

Where does this leave us with supply? Playing some serious catch-up, which is a producer’s dream. In Canada, legalizing recreational marijuana could result in demand of about 400,000 kilograms of cannabis in its first full year, according to Canaccord Genuity analysts. And that’s just for recreational use. Demand for medical cannabis is also growing at a significant pace, and the total combined demand for the first year could be 575,000 kilograms.

Source: New Frontier Data

Arcview Market Research of San-Francisco predicts that legal marijuana sales will reach close to $22 billion by 2021—up from nearly $7 billion last year. That’s an annual growth rate of 26 percent, and it’s in line with Deloitte’s own estimations. But while U.S. producers are facing a time of uncertainty thanks to Trump rumblings against legalization, in Canada, stocks are soaring and the future looks golden.

In Canada alone, Canaccord Genuity predicts that the recreational marijuana industry could reach $6 billion in sales by 2021.

Legalization is coming, and marijuana stocks are set to explode even further—and stay there. This market will reach its tipping point in the summer of 2018, but by then, Invictus MD (TSX:IMH.V; OTC:IVITF)—will already be solidly among the green giants.


This communication is not a recommendation to buy or sell securities.

This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our group newsletter and on our website may be based on end-of- day or intraday data.

Wednesday, April 5, 2017

OPEC’s No.2 Goes Rogue: Plans 600,000 Bpd Oil Output Increase

Iraq has plans to boost its crude oil production by 600,000 bpd to 5 million bpd by the end of this year, regardless of its participation in OPEC’s production cut deal. Iraq is the cartel’s second-biggest exporter of crude and has been the most disinclined of all parties to the agreement since its inception, with a lot of observers expecting it to be the first one to cheat.

Iraq’s first problem is that as much as 95 percent of its budget revenues come from crude oil. There are no viable alternatives in sight for revenues at the moment. The second problem that the country has to contend with is its war with Islamic State, which makes these revenues more important than ever.
Amid the final push against IS in Mosul, Iraq is working hard to ensure the sustainable growth of its oil and gas industry—OPEC deal or no OPEC deal. Three months ago, Oil Minister Jabar al-Luaibi said that Baghdad is planning to build five new refineries on an investment basis, in addition to fixing and expanding existing refineries that were damaged in the war with IS.

While Al-Luaibi has repeatedly assured media—and indirectly, investors—that Iraq will stick to its OPEC commitment, Iraq is doing whatever it can to boost its returns from its only significant natural resource.