NEW YORK, Sept. 10, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- GenTech Holdings, Inc. (OTCMKTS: GTEH) (“GenTech” or the “Company”), an emerging leader in the high-end CBD food and drinks marketplace, is excited to announce the issuance of a Letter of Intent (“LOI”) to acquire a leading California-based CBD ecommerce retailer (the “Target”) in an all-stock transaction with a working capital stipulation to provide for an aggressive growth agenda. The Target is an already-profitable premium CBD distributor focused on the CBD Coffee and Tea Market.
The Company believes the acquisition will powerfully compliment its brick-and-mortar CBD-infusion Café model, giving it a widened exposure footprint to the rapidly growing CBD market. GenTech is slated to open its first CBD-infusion Café in Q1 2020.
“This is a perfect way to augment our physical CBD Café model,” stated David Lovatt, GenTech CEO. “We anticipate multiple lines of synergy following a prospective acquisition. This should be a win-win for both parties and expand our reach immediately.”
Management notes that a driving factor in motivating this acquisition is the preponderance of data suggesting that growth estimates for the overall CBD market are in the process of being revised sharply higher as mainstream consumer adoption dramatically outperforms prior baseline expectations for 2019.
Highlighting this dynamic in its most recent research report on the CBD market space, Brightfield Group, a leading market and consumer intelligence firm for the legal CBD and cannabis industries, reported significant expected acceleration in growth for the CBD market, resulting in a 706% year-over-year CBD product sales jump in the US in 2019 to around $5 billion in total sales, with sales expected to reach $23.7 billion by 2023. This suggests the overall CBD-based products market is set to grow by a stunning 107% CAGR over coming years.
Mr. Lovatt continued, “Completely apart from operational synergies, the investment in horizontal expansion in the CBD market is clearly warranted given current industry trends and forecasted growth over the coming 2-5 year time horizon. This deal makes sense from every angle and should drive a great deal of shareholder value.”
About GenTech Holdings, Inc.
GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The company is creating a national chain of Hemp Centric Coffee Shop Retail Spaces where patrons can relax, drink CBD infused Teas and Coffees, try various own-brand products and experience holistic education and classes. The company is also building an extensive outreach program working with medical practitioners across the country in their own locations to educate their patients and increase awareness of the benefits of THC free CBD Products. All of this is offered under the brand 'The Healthy Leaf'.
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of GenTech, Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech's future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.
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