SEATTLE, WA--(Marketwired - Nov 17, 2016) - CFN Media Group, the leading creative agency and digital media network dedicated to legal cannabis, announces the publication of an article discussing the proven acquisition strategy employed by Invictus MD Strategies Corp. (OTC PINK: IVITF) (CSE: IMH) within the rapidly expanding cannabis industry.
Warren Buffett has a simple strategy when it comes to investing: Find a high-quality company that's undervalued, acquire a significant stake, and let management keep doing what works. Invictus MD is taking a similar approach in the burgeoning cannabis industry by acquiring successful companies. While these companies are certainly riskier than Berkshire Hathaway's blue chip giants, they offer investors much greater potential for upside and a higher probability of success than any individual company within the industry.
Invictus MD acquired an 82.5% stake in Future Harvest, a 20-year-old hydroponics and indoor growing company, as its first investment. In February 2016 Future Harvest sold its lighting division to Sunblaster Holdings for $4.8 million in cash, which represented a 350% return on investment in just 11 months. Management used the cash to invest in its nutrients business and is returning $1 million back to shareholders.
The reinvestment into the nutrients business has paid off, judging by the business' third quarter financial results. During the three-month period, Future Harvest's revenue increased 50% year over year to $587,800 driven by increasing demand for its nutrients. The company has become so successful that management plans to spin out the business into its own public company in January of 2017 if shareholders approve the measure. Each shareholder of Invictus MD as of the date of record will receive the same number of shares in the spun-out Future Harvest public company.
The Future Harvest story illustrates management's strategy to acquiring companies with proven brands, strong customer focus, and significant growth potential within the cannabis industry. While recreational legalization has opened the door to significant industry growth, the market remains extremely fragmented and ripe for management expertise. Invictus brings business planning and process integration to help unlock value in already-successful businesses.
Invictus MD Strategies has already expanded its portfolio beyond Future Harvest and has several acquisitions in its pipeline. As of mid-November, the company owns 100% of PODA Technologies -- developer of a unique dry herb disposable vaporizer system.
Additionally, Invictus recently announced a deal to acquire up to 60% of a business in Las Vegas in the latter stages of applying for a cannabis cultivation license. The Nevada Medical Marijuana Cultivation License intends to complete a preliminary inspection in late-2016 and obtain its final license during the first quarter of next year. Upon issuance of the license, the company will have the option to acquire a 10% equity stake with the option to exercise another 50% expiring within six months.
The 10% valuation of the Nevada license was priced and announced prior to the recent elections in which Nevadans voted to make adult use of marijuana legal. Should the approvals come in as expected, this could end up being a great deal for Invictus and the company's shareholders due to the greatly increased market in light of the new legalization.
Finally, Invictus has an agreement to acquire 49% of Zen Labs, a fully functioning microbial and environmental analytical testing laboratory in Kelowna, British Columbia. Zen Labs is awaiting a Section 56 Class Exemption Dealer's license from Health Canada under the Narcotic Control Regulations, in which Zen Labs will be licensed and authorized to conduct analytical testing services for dried marijuana, fresh marijuana and cannabis extracts.
Follow the link to read the full article: http://www.cannabisfn.com/invest-in-the-berkshire-hathaway-of-the-cannabis-industry/
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About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns CFN Media and CannabisFN.com, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.