Is Gene Simmons the “Kiss” of death for Invictus?

Is Gene Simmons the “Kiss” of death for Invictus?
Is Gene Simmons the “Kiss” of death for Invictus?

This week Invictus MD (TSX.V: IMH | OTC: IVITF) announced the addition of Gene Simmons (Co-Founder of Kiss, among numerous other ventures) as their “Chief Evangelist Officer”. 
 
In the release they state that Mr. Simmons will assist the company with its public awareness strategy and branding for the recreational market, providing marketing counsel, serving as a spokesperson and public appearances. 

The terms of the deal include $2.5 million (US) payable in cash and the issuance of 2,631,141 common shares for the purchase of Gene-Etics Strains Co., plus a further 1,973,355 common shares and a second tranche of 1,973,355 common shares by January 2, 2019 at a price of $1.97 for a managment services agreement and international licensing agreement. 

WHAT?

Upon hearing this, we at The Seed Investor are having trouble understanding why Invictus would make this deal?
 
Let’s look at all that is wrong with this deal in one sentence:
 
A company that bills itself as “Canada’s Cannabis Company” is partnering with a US celebrity, who is noted for his very strong anti-drug stance, while paying an exhorbitant amount and diluting their shares to do it.
 
How does this make any sense?
 
While other companies are aligning themselves with relevant rappers like Snoop Dog and Whiz Khalifa, or legendary pot icons like Willie Nelson, Invictus has chosen a man who did anti-drug ads in the 80’s to help lead their company as they get ready for legalized recreational marijuana?
 

 
While he is an icon that will appeal to a certain demographic, it’s not like he’s super relevant.
 
We understand the appeal of celebrity partnerships, and don’t want to take away from Gene Simmons’ legacy as a rock icon, but this partnership doesn’t add up for us.
 
It seems the market agrees, as their share price has seen a steady dip in the days since the announcement.

This shows that Invictus isn't ready for rec. 
 
There are much better ways to prepare for recreational, like creating a vertically integrated recreational brand and retail strategy as Choom Holdings (CSE: CHOO, OTC: CHOOF) and Hiku (CSE: HIKU) have done.