The legal cannabis market is expanding at a rapid pace. This year five states voted to legalize cannabis for recreational use. In four of these states the proposition passed. Currently 15 states only allow Cannabidiol and alongside that, there are 28 states and District of Columbia that have legalized all forms of medical marijuana. According to a recent report published by The Hemp Business Journal, the Cannabidiol market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources. That's a rapid increase from 2016, as projections for 2016 indicate the hemp-derived CBD market is poised to reach a value of $115 million by the end of the year. Invictus MD Strategies Corp. (OTC: IVITF) (CSE: IMH.CN), Cara Therapeutics Inc. (NASDAQ: CARA), Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE), GW Pharmaceuticals (NASDAQ: GWPH), Cannabis Sativa Inc. (OTC: CBDS)
While many pro-cannabis groups fight for nationwide legalization in recreational use, most states are still only legal for medical purposes. Cannabidiol is the part of the cannabis plant that is typically used for health reasons and does not get the patient "high". It has become a major submarket of the legal cannabis industry, but one that has been growing at a rapid pace.
Invictus MD Strategies Corp. (OTC: IVITF) (CSE: IMH.CN) provides capital years of management experience for cannabis companies with proven brands, strong customer focus, and significant growth potential. The company's operations are centered on the vast opportunities within fragmented industries in the cannabis space.
Invictus MD Strategies Corp. announced this morning that, "it has signed the definitive agreement to acquire 33.33% of AB Laboratories Inc. ("AB Labs"), a Licensed Producer under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"), and up to 33.33% of AB Ventures Inc. ("AB Ventures"), a newly incorporated company formed to develop a second licensed expansion facility.
Under the terms of the agreement Invictus MD will acquire 33.33% of AB Labs, for consideration of CAD$5,000,000 in cash and 2.4 million common shares of Invictus MD on closing and CAD$2,000,000 in cash 90 days after closing. AB Labs is licensed for cultivation under the ACMPR in a 16,000 square foot facility located in Hamilton, Ontario. Invictus MD will have the right of first refusal to arrange any initial public offering, reverse take-over or other going public transaction of AB Labs or AB Ventures following closing. Closing is expected to take place by December 29, 2016.