GTEC Announces Tumbleweed Farms Evidence Package Submission to Health Canada to Confirm Readiness of Cultivation License
Kelowna, BC, March 13, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSXV: GTEC) (OTCQB: GGTTF) (FRA: 1BUP) (“GTEC” or the “Company”) is pleased to announce that Tumbleweed Farms (the “Facility”) has submitted its Affirmation of Readiness and Video Evidence Package (the “Evidence Package”) to Health Canada. The Evidence Package submission is the final step required in order to demonstrate and confirm to Health Canada that the Facility is fully built, operationally ready and is in compliance with the Cannabis Act and Regulations, prior to being issued its Standard Cultivation License. The Facility has also received all other necessary municipal approvals in order to operate, including an Occupancy Permit from the Thompson-Nicola Regional District.
In addition to the existing cultivation license at the Company’s Alberta Craft Cannabis facility in Edmonton, Tumbleweed Farms is the first purpose-built indoor facility that GTEC has completed in order to produce, market and distribute its ultra-premium flower. The Company’s initial planned cultivation footprint is expected to span a total of 120,000 square feet, across three Provinces (Tumbleweed Farms in British Columbia, Alberta Craft Cannabis in Alberta, and Grey Bruce Farms in Ontario), with the anticipation of reaching an estimated annual output of 14,000 kg of indoor flower within 2019 (through the completion of GreenTec Bio-Pharmaceuticals and 3PL, both in British Columbia).
We are excited to deliver another instrumental milestone to our shareholders, and to further increase our existing cultivation capacity,
said Norton Singhavon, Founder, Chairman and CEO of GTEC.
We look forward to Health Canada’s response and; subject to meeting all of the necessary requirements, the issuance of the Company’s second Standard Cultivation License.
On January 30, 2019 the Company issued a press release stating the construction at the Tumbleweed Facility was complete, and that management had expected its final submission into Health Canada the following week. Management had made the decision to postpone its submission to Health Canada and to engage with its regulatory consultant, Cannabis Compliance Inc to conduct an in-depth gap analysis to review and address any deficiencies that would potentially arise with Health Canada before its submission.
Tumbleweed Farms’ initial phase consists of 10,000 square feet for indoor cultivation, strategically located in Chase BC, about 8kms from the Trans-Canada Highway and situated just outside of the Kamloops City limits. The property sits on 23 acres of land with significant future expansion capabilities and access to an on-site gravity fed natural artesian well.
Amending Agreement and Vendor Milestone Payments
The Company has also entered into an agreement on March 4, 2019 (the “Amending Agreement”), amending certain terms and conditions of the definitive share purchase agreement with the Vendors of Tumbleweed Farms, dated August 12, 2017, as amended. The Amending Agreement replaced, among other things, the previous cash milestone payments with the following:
- Upon the Company submitting an evidence package in connection with its application for a licence for cultivation from Health Canada, the Company is to issue $2,250,000 worth of common shares of GTEC (each, a “Common Share” and collectively, the “Common Shares”) at a deemed price per Common Share equal to the 30-day VWAP.
In connection with the Amending Agreement, GTEC intends to issue an aggregate of $2,250,000 of Common Shares in satisfaction of the above-mentioned milestone payment. Accordingly, the Company will issue 3,759,319 Common Shares to the Vendors at a deemed value of approximately $0.60.
GTEC Retains Market-Making Services
GTEC has, subject to regulatory approval, retained Venture Liquidity Providers Inc. (VLP) to initiate its market-making service to provide assistance in maintaining an orderly trading market for the common shares of the company.
The market-making service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Ltd., in compliance with the applicable policies of the TSX Venture Exchange and other applicable laws. For its services, the corporation has agreed to pay VLP $5,000 per month for a period of 12 months. The agreement may be terminated at any time by the corporation or VLP. The corporation and VLP act at arm's length, and VLP has no present interest, directly or indirectly, in the corporation or its securities. The finances and the shares required for the market-making service are provided by W.D. Latimer. The fee paid by the company to VLP is for services only.
VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX-V-listed issuers.
For more information about the TSX Venture Market Making Program, please visit:
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™. The Company 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.