THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Kelowna, BC, May 07, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (GTEC.V) (GGTTF) (FRA:1BUP) (“GTEC” or the “Company”) is pleased to announce that it has completed the previously announced acquisition (the “Acquisition”) of 1203648 B.C. Ltd. (“RetailCo”) for an aggregate purchase price of $2,113,000 (the “Purchase Price”). RetailCo is in the process of obtaining municipal and provincial approvals (collectively, the “Approvals”) to operate a non-medical cannabis retail location. RetailCo will operate under GreenTec Retail Ventures Inc.’s storefront name, “Cake Cannabis Co.” and will serve as GTEC’s flagship store in Western Canada.
Pursuant to the Acquisition, the Company will gain access to over 4,000 square feet of retail space located in an affluent and diverse neighbourhood in Vancouver, BC. The retail space has a high-end interior design and includes displays, shelving and storage.
The Purchase Price was comprised of (i) $47,705.75 cash paid to the shareholders of RetailCo (the “Vendors”), (ii) cancellation of debt in the amount of $2,294.25 owed by the Vendors to GTEC and (3) the issuance of $2,063,000 worth of common shares in the capital of GTEC (“Common Shares”). Accordingly, the Company issued 3,438,333 Common Shares to the Vendors at a deemed value of $0.60 per share.
The Common Shares issued in connection with the Acquisition are subject to a statutory hold period of four months and one day from the date of issuance thereof. 1,719,167 Common Shares issued are also subject to a contractual escrow period (the “Escrowed Shares”) until RetailCo successfully obtains all necessary Approvals for the retail sale of non-medical cannabis. In the event RetailCo does not obtain all necessary Approvals by April 26, 2020, the Escrowed Shares will be returned to GTEC treasury for cancellation.
Termination of AssetCo LOI
Further to previous announcements on November 7, 2018 and March 22, 2019, GTEC has exercised its right of termination under the binding letter agreement (the “Letter Agreement”) with a private British Columbia corporation (“AssetCo”) to acquire 2 other retail locations in Vancouver.
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, Standard Processing 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 has 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 over 35 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™, Treehugger™, and FN™.
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.
The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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. 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.