KELOWNA, BC, Oct. 19, 2018 /CNW/ - GTEC Holdings Ltd.
(TSXV: GTEC) (OTCPK: GGTTF) ("GTEC" or the "Company")
is pleased to announce that it has entered into a definitive
agreement (the "Definitive Agreement") with Invictus MD Strategies
Corp. (TSXV: GENE) (OTC: IVITF) (FRA: 8IS1) for the previously
announced non-revolving unsecured convertible loan (the "Loan
Facility") in an amount up to $2,000,000, and an interest rate of 8% (see press
release dated August 30, 2018, for
more details). The proceeds from the Loan Facility will be used by
GTEC for the expansion and development of its cannabis retail
strategy in Canada.
See GTEC press release titled "GTEC Holdings Announces Initial
Retail Cannabis Stores Scheduled to Be Operational in 2018," dated
October 11, 2018, for a current
update on GTEC's retail operations.
The Definitive Agreement provides Invictus with a Right of First
Refusal ("ROFR") to fill up to thirty percent (30%) of any
third-party supply agreement that GTEC, or its subsidiaries, has
for the supply of cannabis flower or oil, whether domestic or
international, for a period of two years from the date that GTEC,
or one of its subsidiaries, receives its first Sales License from
Health Canada.
"This week, we as Canadians have made unprecedented worldwide
history as we embark into legalization for adult recreational use.
We are excited to enter this journey together with Invictus." said
Norton Singhavon, Chairman and CEO of GTEC. "The premium flower,
distinct brands and diverse genetics will complement our
anticipated 35+ retail locations between British Columbia, Alberta and Saskatchewan."
"The team at GTEC has successfully executed one of the most
robust retail strategies in Western
Canada," said Dan Kriznic,
Chairman and CEO of Invictus. "Over the next coming weeks, we look
forward to finalizing the supply and launches of our premium
adult-use cannabis products."
The Loan Facility shall be due and payable in full on the date
that is two years following the date of the first advance on the
Loan Facility (the "Maturity Date"). GTEC will be entitled to
prepay all or a part of the Loan Facility at any time, from time to
time, without bonus or penalty. Upon mutual agreement by both
parties and prior to the Maturity Date, Invictus may increase the
amount of the Loan Facility up to $6,000,000 in aggregate, and further extend the
term of the Loan Facility.
Upon regulatory approval, all or a portion of the principal and
accrued interest on the Loan Facility may be convertible into
common shares of GTEC, at the option of Invictus, at any time prior
to or on the last business day immediately preceding the Maturity
Date, at a conversion price equal to $1.50 per common share (the "Conversion
Price").
About Invictus
Invictus is a global cannabis company offering a selection of
products under a wide range of lifestyle brands. Our integrated
sales approach is defined by five pillars of distribution including
medical, adult-use, international, Licensed Producer to Licensed
Producer and retail stores.
Invictus has partnered with business leaders to convey our
corporate vision, including KISS music legend and business mogul
Gene Simmons as our Chief Evangelist
Officer. To meet growing demand, Invictus is expanding its
cultivation footprint, with two cannabis production facilities
fully licensed under the ACMPR in Canada and a third awaiting approval,
featuring 100,000 square feet of available grow space today with
200,000 expected by January 2019 and
up to 1 million by end of 2020. To accommodate international sales,
Invictus' wholly-owned subsidiary, Acreage Pharms Ltd. ("Acreage
Pharms"), has designed and is currently building its Phase 3 and 4
purpose-built cultivation facilities to be European Union Good
Manufacturing Practices ("EU-GMP") compliant. The Company will
earmark up to 50 per cent of production to the medical market. To
ensure consistency in quality and supply, Invictus maintains all
aspects of the growing process through its subsidiary, Future
Harvest Development Ltd., a high-quality Fertilizer and Nutrients
manufacturer. Invictus drives sustainable long-term shareholder
value through a diversified product portfolio with over 69 Health
Canada approved strains and a multifaceted distribution strategy
including medical, adult-use, international, Licensed Producer to
Licensed Producer and retail stores. For more information visit
www.invictus-md.com.
About GTEC
GTEC was founded in 2017 to capitalize on opportunities in the
nascent and rapidly growing legal cannabis industry. GTEC is a
public corporation listed on the TSX Venture Exchange and based in
Kelowna, British Columbia. GTEC is
focused on growing premium quality craft cannabis in purpose-built
indoor facilities. GTEC currently holds a 100% interest in GreenTec
Bio-Pharmaceuticals., Alberta Craft Cannabis, Grey Bruce Farms,
Tumbleweed Farms, Zenalytic Laboratories, and Spectre Labs.
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,
Norton Singhavon
Founder, Chairman & CEO
778-760-8288
ns@gtec.co
Michael Blady
Co-Founder & Vice President
604-720-3474
mb@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.
SOURCE GreenTec Holdings