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Invictus will pay $1M (U.S.) cash by way of a convertible debenture to Cannera Equipment Leasing. CEL has committed up to $1M (U.S.) by way of equipment financing and tenant upgrades to the licensed facility, which is currently in final stages of construction and will have the capacity to produce 2,500 kilograms annually.
NEVADA STATE LICENSE
Invictus closed an option agreement to acquire up to 60% in a state of Nevada (SNV) medical marijuana cultivation license located in Las Vegas, Nevada on November 22, 2016.
The terms of the option allow Invictus to acquire 10% of the seller within 45 days after the seller has obtained its final approval for cultivation from the SNV inspection department. Invictus will pay the seller $150K in cash to secure the option. A preliminary inspection date was booked for late 2016, and the final cultivation license is expected to be issued in the first quarter of 2017. Upon issuance of the cultivation license, Invictus will have the option to acquire a 10% equity stake from the seller for $500K (U.S) in cash plus $1.7M (U.S.) in common shares of Invictus at an issue price equal to the volume-weighted average price for the three trading days ending on the trading day prior to the date of delivery of the option exercise notice and converted to U.S. dollars using the most recent Bank of Canada noon spot rate. The seller also grants Invictus the sole and exclusive option to purchase an additional 50% of the seller for $16.9M (U.S.) payable in any combination of cash and/or common shares of Invictus. This option will expire 183 days after the closing of the first option.
Invictus is dealing with GreenTec Nevada Holdings, which holds 60% of a cultivation license in Las Vegas Nevada, (see the PR for more details). 16,000 sq ft of cultivation space located right next the Vegas strip… Viva Las Vegas!