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Invictus Group Granted Creditor Protection

Canadian marijuana company Invictus MD Strategies Corp. said Thursday that the Supreme Court of British Columbia has granted the company creditor protection under the Companies' Creditors Arrangement Act or CCAA.

The court order also extends protection to Greener Pastures MD Ltd., Acreage Pharms Ltd. and 2015059 Alberta Ltd., together with Invictus MD Strategies, known collectively as the Invictus Group.

Invictus is the latest marijuana company in Canada to seek creditor protection as cannabis companies run out of cash as they struggle with weak earnings results and high capital expenditures. Cannabis companies Wayland Group and AgMedica Bioscience had sought creditor protection in December.

Invictus Group said it sought creditor protection to stabilize its business, pursue strategic alternatives and address near-term liquidity issues.

The move comes after Acreage, the primary operating entity of Invictus Group, received a demand and a notice of intention to enforce security from its secured lender ATB Financial.

ATB Financial demanded a total amount of C$10.62 million, together with legal and professional fees, premium, make-whole, costs, charges, disbursements and expenses incurred by the lender, Invictus noted.

In accordance with the court order, ATB Financial and all other creditors are now stayed from enforcing against Invictus Group. The court has appointed PricewaterhouseCoopers Inc. to serve as monitor in the CCAA proceedings.

Invictus said its board of directors determined that a CCAA proceeding was the most effective way to maximize stakeholder value, address short-term liquidity challenges and continue to operate the business.

While in CCAA protection, Invictus will continue its normal day-to-day operations and intends to commence a review of strategic alternatives in the immediate future.

Invictus also said that Marc Ripa, the company's interim chief executive officer and chief operating officer, has resigned, effective at the close of business on Friday, February 14, 2020.

Ripa will remain as a member of the company's board to assist with a transition. The board has not yet appointed a replacement for Ripa as Interim CEO.

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