Kelowna, BC, Jan. 15, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSXV: GTEC) (OTC: GGTTF) (“GTEC” or the “Company”) announces that pursuant to the terms of a non-binding letter of intent (the “LOI”) entered into with Invictus MD Strategies Inc. (TSXV:GENE; OTC:IVITF; FRA:8IS1) (“Invictus”), as announced on November 16, 2018, the parties have mutually agreed to terminate the LOI and not proceed with the merger.
GTEC and Invictus maintain a strong working relationship based on their previously announced definitive agreement dated August 30, 2018 whereby:
- GTEC entered into a $2m convertible loan facility with Invictus, at an interest rate of prime plus 5%. The loan facility is convertible at $1.50 per common share of GTEC and is due on the date that is two years following the date of the first draw. As of the date hereof, GTEC has drawn-down on the facility.
- As additional consideration, GTEC has provided Invictus with a right of first refusal to fill up to 30% of any cannabis purchase order domestically and internationally (whether for flower or oil) that GTEC, or its wholly-owned subsidiaries are seeking to purchase from third party Licensed Producers for a period of two years.
“We look forward to continuing down the path of GTEC becoming one of Canada’s leading premium focused and vertically integrated cannabis companies, while maintaining a strong working relationship with the Invictus team,” said Norton Singhavon, Founder, Chairman & CEO. “2019 will prove to be an instrumental year for GTEC as we continue to execute on our vision and strategy within the premium cannabis market in Canada.”
“Invictus is continually aiming to realize its vision of building a cannabis company anchored on its Western Canadian roots, with a focus on satisfying patients’ and consumer’s needs in the medical and recreational markets, respectively,” said George E. Kveton, President and CEO of Invictus. “We look forward to maintaining and further increasing our strong, strategic partnerships with companies like GTEC to support our five pillars of distribution including medical, recreational, international, Licensed Producer to Licensed Producer, and retail.”
About GTEC
GTEC Holdings is a specialized craft cannabis company dedicated to cultivating premium quality cannabis in purpose-built indoor facilities. The company is vertically integrated across all major sectors of the Canadian cannabis industry and holds Cultivation, Extraction and Analytical testing licenses. The management team is comprised of a diverse skill set sourced from leading global food & beverage and premium alcohol companies. GTEC’s retail division is pursuing licensing for over 35 recreational cannabis stores across Western Canada. GTEC’s premium indoor cannabis will be marketed and sold under its flagship trademarked brands; BLK MKT TM; Tenzo TM, GreenTec TM, cognōscente TM, FN TM, and Treehugger TM. 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 and the OTCQB Venture Market. 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,
Norton Singhavon
Founder, Chairman & CEO
ns@gtec.co
Michael Blady
Co-Founder & Vice President
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.
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.