Kelowna, BC, July 08, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSX-V:GTEC) (OTCQB:GGTTF) (FRA:1BUP) (“GTEC” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Grey Bruce Farms (“Grey Bruce”) has been granted a Standard Cultivation License (the “License”) by Health Canada.
Grey Bruce is an automated, state-of-the-art facility located in Kincardine, Ontario. The facility was carefully designed, constructed and equipped with a mandate and focus on systems, technology, process flow and good production practices to optimize output of ultra-premium indoor flower. The initial phase of the facility spans 15,000 sq. ft. and is estimated to produce 1.65 million grams annually. With the licensing of Grey Bruce, the Company’s current annual output is now estimated at approximately 3 million grams.
In accordance with the Cannabis Act and Regulations, Grey Bruce has immediately commenced cultivation of live plants from GTEC’s extensive portfolio of exotic and rare cultivars (more commonly known as genetics). GTEC’s exclusively sourced genetics, which have been through a meticulous and comprehensive pheno selection process will be gradually implemented at GTEC’s other facilities.
The Company now has facilities licensed for cultivation in both Eastern and Western Canada. As previously announced, there has been an increased demand for GTEC’s premium flower, and the Grey Bruce facility will enable GTEC to fulfill the demand for its cannabis from other Licensed Producers; and subject to Alberta Craft Cannabis (“ACC”) receiving approval of its Federal sales license, introduce GTEC products into Provincial supply chains.
“With the increasing demand for our premium flower, we are excited to be delivering on another significant milestone for our shareholders,” said Norton Singhavon, GTEC Founder, Chairman and CEO. “We anticipate this License will increase our companywide flower output by over 120%. We look forward to producing and distributing our new portfolio of products to the Canadian market this fall.”
In addition to the Standard Cultivation licenses issued to ACC in Edmonton and now Grey Bruce in Kincardine, Ontario, the Company awaits issuance of a third Standard Cultivation license at Tumbleweed Farms in Chase BC. ACC also completed a Health Canada inspection for its Sales License on June 25-26, 2019 and received a formal inspection report from Health Canada on Friday July 5, 2019. ACC is currently compiling its response to the regulators, in order to comply with any requests made within the required ten business day period.
ROK Consulting - Clarification
GTEC wishes to clarify that further to the press release issued June 27, 2019, it has engaged ROK Consulting Inc. (“ROK Consulting”) to perform advisory services in marketing communications (the “Services”). The Services will be provided in connection with GTEC’s planned expansion across Western Canada.
ROK Consulting has over 30 years’ experience in implementing communication strategies for companies ranging in size from start-ups to Fortune 500 corporations.
Subject to Exchange approval, in exchange for the Services rendered, the Company has issued 100,000 common shares of GTEC (the “Common Shares”) at a deemed value of $0.55 per share. The Common Shares will be subject to a statutory hold period of four months and one day from the date of issuance thereof and bear a legend as required by the United States Securities Act of 1933.
Satisfaction of Milestone Payment
In accordance with the amended and restated Share Purchase Agreement dated September 15, 2017 among GreenTec Holdings Ltd (“GreenTec”) and the vendors of Grey Bruce Farms (the “Vendors”), as assigned to GTEC Holdings Ltd. (“GTEC”) by an Assignment and Assumption and Consent dated June 11, 2018 between GTEC, GreenTec and such Vendors (together, the “Agreement”), receipt of the Cultivation License from Health Canada, entitles the Vendors to a “Milestone Payment” pursuant to the Agreement and GTEC will issue 2,222,222 shares to the Vendors at a deemed price of $0.45, based on the most recent 3-day volume weighted average price (“VWAP”), for an aggregate value of $1 million. Norton Singhavon, the Company’s Chief Executive Officer, who is one of the Vendors, will receive approximately 1,444,768 shares (of the aggregate 2,222,222 shares) issued in connection with the Milestone Payment. The share issuance is subject to TSX Venture approval and, upon issuance; will be subject to a statutory 4-month and a day hold.
The shares to be issued to Mr. Singhavon is considered to be a related party transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI - 61-101”). However, the related party transaction is exempt from minority approval, information circular and formal valuation requirements pursuant to Sections 5.5 (a) and 5.7 (a) of MI 61-101, as neither the fair market value of the gross securities issued nor the consideration paid by the insiders exceed 25% of the Company’s market capitalization.
GTEC Holdings is a specialized cannabis company dedicated to cultivating ultra-premium quality cannabis in purpose-built indoor facilities. The company is vertically integrated across all major sectors of the Canadian cannabis industry and is currently licensed by Health Canada for Standard Cultivation at two facilities, Standard Processing (extraction) and Analytical testing. The management team is comprised of a diverse skill set sourced from leading global food & beverage and premium alcohol companies. GTEC has completed three cultivation facilities and is currently cultivating and selling cannabis.
The Company anticipates two additional facilities coming on stream in the latter half of 2019, which will increase annual capacity from 4,000 kg to 14,000 kg. GTEC’s retail division is pursuing licensing for recreational cannabis stores across Western Canada. GTEC’s ultra-premium indoor flower will be marketed and sold under its flagship trademarked brands; BLK MKT™, Tenzo™, GreenTec™, Cognōscente™ and Treehugger™.
GTEC is actively pursuing sales and distribution opportunities across all major business channels: medical, recreational, B2B and export. GTEC is a publicly traded corporation, listed on the TSX Venture Exchange, OTCQB Venture Market and Frankfurt Stock Exchange. The Company is headquartered in Kelowna, British Columbia.
To view more about the company or to request our most recent corporate presentation, please visit our website at www.gtec.co
On behalf of the board,
Founder, Chairman & CEO
Co-Founder & Vice President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals, where applicable and the state of the capital markets. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. For instance, there can be no assurance that Grey Bruce can produce an estimate of 1.65m grams annually; that the Company will reach annual output of near 3m grams; that there will be continued demand for the Company’s flower; that the Company can continue production for demand and that two additional facilities will be on stream in the latter half of 2019 which would increase annual capacity from 4,000 kg to 14,000 kg. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For additional information please contact: GTEC Holdings Ltd. 1-800-351-6358 firstname.lastname@example.org