On October 19, 2018, Invictus MD Strategies Corp. entered into a definitive agreement with GTEC Holdings Ltd. for a non-revolving unsecured convertible loan in an amount up to $2 million and an interest rate of 8%. The proceeds from the loan facility will be used by GTEC for the expansion and development of its cannabis retail strategy in Canada.
The agreement provides Invictus with a Right of First Refusal to fill up to thirty percent of GTEC’s, or its subsidiaries, requirements for third party supply of cannabis flower or oil, whether domestic or international, for a period of two years from the date that GTEC, or one of its subsidiaries, receives its first Sales License from Health Canada.
Upon mutual agreement by both parties and prior to the maturity date, Invictus may increase the amount of the loan facility up to $6 million in aggregate, and further extend the term of the loan facility.
Cassels Brock acted for Invictus with a deal team that includes Josef Hocher and Andrew Dilts (Business Law) and Stephen Selznick (Intellectual Property and Cannabis).