Economy
Invictus Secures $25.5m Debt Financing from ATB Financial
By Modupe Gbadeyanka
Global cannabis company, Invictus MD Strategies Corporation, has signed a commitment letter for a $25.5 million debt financing arrangement with an interest rate at prime plus 2 percent per annum with ATB Financial (ATB).
The funding package is to enable it accelerate the construction of its Phase 3 and Phase 4 cannabis cultivation facilities at Acreage Pharms Ltd, located in West-Central Alberta.
A statement issued by the firm disclosed that the expansion plan will add a total of 180,000 square feet of production capacity to Acreage Pharms.
The Phase 3 expansion is underway with over $3 million in progress payments already made for permitting, lot preparation, foundation construction and precast installation. Phase 3 has a target completion date of January 2019 and will bring the company’s gross cultivation space to 200,000 square feet. Phase 4 will be completed by mid-2019.
“We’re ramping up production for the adult-use market in Canada” said Dan Kriznic, Chairman and CEO of Invictus. “As a fast-growing cannabis company, Invictus is aiming to further strengthen its stake in the marketplace with continued development of construction projects, quality products and retail presence.
“It’s great to see traditional lenders coming into the cannabis space and ATB has proven to be a long-term partner that will not only help finance the Expansion Plan at Acreage Pharms but will also finance other expansion plans as they come to fruition.
“Utilizing traditional debt financing combined with equity is key to minimizing dilution to our shareholders at the lowest cost of capital possible. Invictus’ share structure with 96.6 million shares issued and outstanding is one of the most efficient capital structures in the public markets when compared to other cannabis companies.
“We are working diligently on building out our 5 pillars of success to include Medical market, adult-use market, international market, retail market and sourcing supply from other licensed producers.
“Layered within each of these 5 pillars is our branding strategy, which is currently being finalized and expect to be rolled out in phases over the coming weeks and months as we continue to develop and execute the brand strategy with our partners, the Authentic Brands Group, based out of New York, and one of the largest branding companies on the globe.”
The financing will be deployed in stages and will help fund the development of two additional 90,000 square foot purpose-built indoor cultivation facilities, including all plans and specifications pertaining to the structural, architectural, mechanical, electrical and interior design, the statement explained.
Each state-of-the-art expansion will utilize a controlled and regulated environment for cultivation, trimming, drying and storing, and will include 40 individual flower rooms, each with approximately 1,500 square feet of cultivation space, it added.
It was further stated that the Financing is expected to close mid-August and is conditional upon the completion of final due diligence procedures performed by ATB legal counsel.
On May 18, 2018, Acreage Pharms received its sales license from Health Canada pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR), which is the company’s second sales license under the ACMPR.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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