Canadian Cannabis M&A: Invictus To Acquire GTEC Holdings

The consolidation in the cannabis industry continued in Canada Friday with Invictus MD Strategies Corp IVITF announcement that it has agreed to acquire GTEC Holdings Ltd GGTF.

The agreement was announced the same day that Invictus said it completed the purchase of Canandia for $29.4 million.

What Happened

The transaction is all-cash and valued at around 100 million Candian ($76 million), Invictus MD Strategies said in a press release.

This represents a premium of 25-percent to the 30-day volume weighted average of GTEC's and Invictus' common stocks as of Nov. 15. GTEC shareholders will hold around 40 percent of the newly formed company. 

"This merger allows for both companies to leverage the combined core competencies to further execute our vision to be at the forefront of the Canadian cannabis industry and beyond," Invictus CEO George Kveton said in a statement.

Why It's Important

Following the acquisition, Invictus MD Strategies Corp will be one of the largest vertically integrated companies in Western Canada focused on indoor cannabis cultivation. The company is set to have 400,000 square feet of indoor cultivation space; a genetic portfolio of more than 80 cannabis strains; over 30 retail stores in British Columbia, Alberta and Saskatchewan; two extraction labs; and an analytical testing lab.

Invictus, which trades under the ticker "GENE" on the TSX Venture Exchange, announced earlier this year that KISS bassist Gene Simmons had joined the company as its chief evangelist officer.

What's Next

The transaction requires the approval of two-thirds of GTEC shareholders in a vote to be held at a special meeting.

Invictus MD Strategies has been ramping up its M&A activity lately. Before GTEC and Canandia, the company acquired Leaf Wise. 

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