GTEC Announces Satisfaction of Grey Bruce Farms Harvest Milestones
Kelowna, BC – May 13, 2020 – GTEC Holdings Ltd. (TSXV:GTEC) (OTC:GGTTF) (FRA:1BUP) (“GTEC”, the “Company” or “GTEC Cannabis Co.”) is pleased to announce that the third and fourth harvests by subsidiary Grey Bruce Farms (“GBF”) passed Health Canada testing requirements, satisfying two further harvest milestones under the terms and conditions of a share purchase agreement dated September 15, 2017 among GreenTec Holdings Ltd. and the vendors of GBF, as assumed by the Company and subsequently amended by the parties March 13, 2020 (all together, the “GBF Agreement”).
Accordingly, the Company intends to issue an aggregate of 381,818 Common Shares to the arm’s length vendors of GBF, at a deemed price of $0.55 per share to satisfy required milestone payments which total $210,000 per the terms of the GBF Agreement.
The issuance of Common Shares pursuant to the GBF Agreement is subject to approval of the TSX Venture Exchange (“TSXV”). The Common Shares will be subject to a statutory hold period of four months and one day from the date of issuance thereof.
Share Issuance for Services Provided
The Company also announces that it has entered into an agreement (the "Agreement") with Anita H. Boehm Law Corporation (“ABLC”), GTEC’s in-house corporate counsel, with respect to accrued fees for services provided to the Company. The Company has agreed to issue 354,545 common shares (the "Shares") at a deemed price of $0.14 per Share in consideration for services totaling $49,635. The issuance of the Shares pursuant to the Agreement is subject to the approval of the TSX Venture Exchange. The Shares will be subject to a statutory hold period of four months and one day from the date of issuance thereof.
About GTEC Cannabis Co
GTEC Cannabis Co. is a specialized cannabis company which produces and distributes highly sought-after ultra-premium cannabis products in Canada. The Company has four licensed and operational assets and is currently distributing cannabis through medical and recreational sales channels. GTEC’s products are currently achieving amongst the highest gross margins and retail pricing within its sector in Canada (A).
GTEC’s exclusive cultivar collection includes rare and unique cultivars, which are not currently available from other Licenced Producers. GTEC’s premium and ultra-premium product portfolio includes: BLK MKT™, Tenzo™, GreenTec™, Cognōscente™ and Treehugger™.
The Company wholly owns operations in BC, Alberta and Ontario, and is licensed by Health Canada for the following: sales into recreational supply chains, direct sales to medical patients, extraction, and analytical testing.
GTEC is a publicly traded corporation, listed on the TSX Venture Exchange (GTEC), OTCQB Venture Market (GGTTF) and Frankfurt Stock Exchange (1BUP). The Company’s headquarters is based out of Kelowna, British Columbia. To learn more about the company or to request our most recent corporate presentation, please visit our website at www.gtec.co
For additional information, please contact:
GTEC Cannabis Co.
1-800-351-6358
contact@gtec.co
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 and among other things, there can be no assurance that: the Company will achieve full production capacity which is expected to drive increased revenue growth in the second and third quarter 2020; the Company will increase average selling prices and gross margins by transitioning from bulk B2B cannabis sales to CPG cannabis sales (via Provincial sales channels); the Company will continue to have demand for BLK MKT branded products; the Company will achieve profitability or significant growth each quarter; the Company will be able to settle its outstanding liabilities and debt obligations in the 2020 fiscal year; production and sales will increase quarter-over-quarter; Grey Bruce and Tumbleweed will enter into full production; management will be successful in further reducing expenditures; the Company will be able to reduce expenditures in the 2020 fiscal year and strengthen its balance sheet; the Company will become cash flow positive; production, capacity or efficiency estimaThis 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 forward-looking 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 the Company’s products will continue achieving amongst the highest gross margins and retail pricing within its sector in Canada; or that the TSXV will approve the shares issuances. 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.tes or sales projections will be met; the Company’s selling price and gross margin will increase; unforeseen construction, harvest or delivery delays will not occur; the Company’s combined annual output will meet expectations; the Company’s genetic portfolio will deliver a sustainable competitive advantage and provide favourable gross margins or that the Company will be able to establish long-term brand equity and consumer loyalty; and there will be continued demand for the Company’s flower. Accordingly, readers should not place undue reliance on forward-looking statements, which speak only as of the date of this news release. 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.
This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. These non-IFRS financial performance measures are defined in the MD&A. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardizNote (A): This analysis is based on the most recently available Financial Statements on SEDAR from publicly listed Licenced Producers (including GTEC), as of November 19, 2019. Companies included, were those listed on New Cannabis Ventures Canadian Cannabis LP Index, that currently produce in a greenhouse, indoor operation, or a combination of both, with quarterly sales greater than $1 million. Those with outdoor operations were excluded from the analysis. Based on the analysis GTEC had the third highest gross margin in the sector, and the no.1 highest based on those solely with indoor operations.ed methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.