Kelowna, BC, May 09, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSX-V:GTEC) (OTC:GGTTF) (FRA:1BUP) (“GTEC” or the “Company”) is pleased to provide management commentary and shareholder updates on the recently announced Statement from Health Canada regarding changes to cannabis licensing.
Background:
On May 8, 2019, Health Canada announced certain changes to align the approach of cannabis licensing with the approach of other regulated sectors, such as pharmaceuticals. Effective immediately, Health Canada will require new applicants for licenses under the Cannabis Act & Regulations to have a fully built site at the time of their application (as well as satisfying other application criteria).
Existing applications will receive a high-level review, and if the applicant passes this review stage, Health Canada will provide a status update letter to the applicant, indicating that it has no concerns with the proposed application. Upon completion of the site, Health Canada will review the application in detail and in priority, based on the original application.
There are no changes to the regulatory requirements set out in the Cannabis Act & Regulations.
A detailed press release issued by Health Canada can be found here:
https://www.newswire.ca/news-releases/statement-from-health-canada-on-changes-to-cannabis-licensing-837732427.html
Shareholder Updates:
With the announced changes, the Company remains confident in obtaining the necessary licensing at its pre-licensing stage facilities. The revised process eliminates the burden for Health Canada to dedicate its efforts to reviewing applications that are not fully built out and operationally ready, or applications that may not have adequate financing to complete their facility development. We believe this will lead to a more streamlined process, allowing companies like GTEC to be placed in priority for licensing.
“In a policy and regulatory driven environment, we feel that it is imperative for the regulator to deploy its resources into industry stakeholders who have demonstrated their operational readiness. We would like to commend Health Canada on their efforts in fostering the growth of the Canadian cannabis industry,” said Norton Singhavon, Founder, Chairman & CEO of GTEC. “We are excited about the changes, and view them as a positive development for GTEC and its shareholders. We look forward to commencing cultivation at Tumbleweed and Grey Bruce in the near future.”
The Company would like to provide the following updates on its cultivation facilities that fall within the Cannabis Act & Regulations.
Alberta Craft Cannabis (“ACC”):
ACC is licensed for cultivation, operating at full capacity and revenue generating (as previously announced on March 4, 2019).
Tumbleweed Farms:
On March 13th, 2019, the Company announced that Tumbleweed Farms had submitted its Affirmation of Readiness and Video Evidence Package (the “Evidence Package”) to Health Canada.
Given that Tumbleweed is a fully built out site that has submitted its evidence package, the Company remains confident that it will be placed in priority for a license from Health Canada.
Grey Bruce Farms:
Grey Bruce has completed construction on its 15,000 sq. ft. facility and is now in the final stages of compiling its Evidence Package to submit to Health Canada. It is anticipated that the Evidence Package will be submitted next week.
Given that Grey Bruce is a fully built out site, the Company remains confident that it will be placed in priority for a license from Health Canada.
GreenTec Bio-Pharmaceuticals (“GreenTec”) – Phase One:
The exterior of GreenTec has been completed, and over the duration of calendar Q2 and Q3 2019, the Company will complete the construction of the interior. Since GreenTec is an existing application, the Company remains confident it will not lose its priority; and once the site is fully built out and its Evidence Package submitted, that a license will be issued in a timely manner (subject to meeting all necessary regulatory requirements set out by Health Canada).
3PL Ventures – Phase One:
Construction at 3PL has reached substantial completion, in which over 50% of the construction budget has been deployed. The Company anticipates that the facility will be ready for licensing in calendar Q4 2019.
3PL currently does not have an application submitted, and will submit one to Health Canada upon completion of construction.
Given its geographic proximity to other GTEC facilities located within the Okanagan region of British Columbia, the Company intends to utilize security-cleared personnel from its other facilities to expedite its licensing process. Accordingly, the Company remains confident that upon completion of construction, that a license will be issued in a timely manner.
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, 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™.
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
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) 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.