Kelowna, BC, July 22, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSX-V:GTEC) (OTCQB:GGTTF) (FRA:1BUP) (“GTEC” or the “Company”) is pleased to announce that GTEC and Canopy Growth Corporation (“Canopy Growth”) (TSX:WEED) (NYSE:CGC) entered into a purchase and sale agreement (the “PSA”) pursuant to which GTEC, subject to certain conditions set out below, will acquire the second expansion site in Kelowna, BC (the “Facility”) of Canopy Growth (the “Transaction”).
Assuming completion of the Transaction and receipt of a cultivation license by Health Canada, the Facility is estimated to increase GTEC’s annual production capacity by 4,000 kg, bringing the Company’s total projected annual output to 18,000 kg throughout 160,000 sq. ft. of indoor flowering space by 2020. The Facility is near completion and has been built out to specs and standards that adhere to GTEC’s mandate to produce premium flower in purpose-built indoor facilities. The cost to complete construction of the Facility is estimated to be approximately $2 million.
“We are very excited about this opportunity, as the Facility has been thoughtfully designed and built-out, and is located in our own backyard,” said Norton Singhavon, GTEC Founder, Chairman and CEO. “With the increasing demand of our premium flower, we look forward to further increasing our production capacity by 2020.”
Health Canada recently announced changes on May 8th, 2019 requiring new applicants for licenses under the Cannabis Act & Regulations to have a fully built site at the time of their application. Given that the Facility is near completion, GTEC anticipates that it will be ready to submit its application and evidence package to Health Canada within a timely manner, and – subject to the closing of the Transaction and receiving Health Canada approval – to commence cultivation in early 2020.
The purchase price of the Facility is $13 million, which includes, among other things: all rights; title and interest to the land; growing equipment; and project-related documents. In connection with the PSA dated May 16, 2019, GTEC provided a refundable deposit of $250,000 and will be required to provide an additional $500,000 non-refundable deposit upon satisfaction, on or before August 15, 2019 of the following conditions:
- GTEC being satisfied with its due diligence relating to the Transaction;
- GTEC, having obtained a financing commitment for the amount and upon terms satisfactory to GTEC, acting in its sole discretion; and
- Approval by GTEC board of directors of the Transaction.
The board of directors of GTEC approved the Transaction, subject to ongoing due diligence and receipt of satisfactory financing. The Transaction remains subject to the approval of the TSX Venture Exchange. Assuming the aforementioned conditions are met, the Transaction would close on or about October 15th, 2019.
Corporate Presentation
The Company has also updated its Corporate Presentation to reflect its current initiatives and strategy. A copy of this presentation can be downloaded under the Investors page on the GTEC website (www.gtec.co/investors/)
About GTEC
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 at two facilities, Standard Processing (extraction) 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 anticipates 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 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™ and Treehugger™.
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
About Canopy Growth Corporation
Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents.
Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.
Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.
From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates eleven licensed cannabis production sites with over 4.7 million square feet of production capacity, including over one million square feet of GMP certified production space. For more information visit www.canopygrowth.com
On behalf of the board,
Norton Singhavon
Founder, Chairman & CEO
Michael Blady
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) accept 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 Facility will increase the Company’s annual production capacity; that the Company will be satisfied with its due diligence investigation in respect of the Transaction; that the financing commitment will be obtained on terms satisfactory to the Company; that all applicable Health Canada licenses, permits and approvals will be satisfied; that applicable municipal permits will be obtained; that the Transaction will be approved by the TSX Venture Exchange; and that there will be continued demand for the Company’s flower; that the Company can continue production for demand. 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.