Kelowna, BC, Aug. 19, 2019 (GLOBE NEWSWIRE) --
- Tumbleweed Receives Cultivation, Processing and Medical Sales Licences
- GTEC now owns three licensed cultivation facilities, including two facilities licensed for both medical sales and Provincial adult-use sales
- Estimated Annual production of 4,000 kg of indoor flower
- Executed all three Health Canada licensing milestones for 2019
- Cultivation has immediately commenced at Tumbleweed
GTEC Holdings Ltd. (GTEC.V) (GGTTF) (FRA:1BUP) (“GTEC” or the “Company”), a vertically integrated premium cannabis producer, is pleased to announce that its wholly-owned subsidiary, Tumbleweed Farms Inc. (“Tumbleweed”), was granted Standard Cultivation, Standard Processing and Medical Sales Licences, pursuant to the Cannabis Act and Regulations by Health Canada on August 16, 2019.
With the licensing of Tumbleweed, management expects the following forecasts across the organization's three operational cultivation facilities:
- Estimated Annual production of 4,000 kg of flower and 1,000 kg trim
- GTEC to achieve positive cash flow in the near future, upon Tumbleweed and Grey Bruce entering into full production and sales
GTEC is currently implementing its new cultivars into Alberta Craft Cannabis (“ACC”) and will transition its sales efforts from B2B wholesale, to Provincial & Territorial adult-use supply chains and direct to medical patients, with the expectation that its average selling price will increase. The Company anticipates the completion of two more facilities (GreenTec Bio-Pharma and 3PL) in the near future, which is expected to increase the organization’s production output in 2020.
Within the most recent six weeks, the Company has successfully executed on accomplishing all three of its cannabis licensing objectives for 2019, which include the following:
- Standard Cultivation Licence at Grey Bruce Farms - July 5, 2019
- Standard Processing and Medical Sales Licence at Alberta Craft Cannabis - July 26, 2019
- Standard Cultivation, Processing and Medical Sales Licence at Tumbleweed Farms - August 16, 2019
“We are incredibly proud of the dedication and commitment of our subsidiaries in accomplishing the most recently issued licences,” said Norton Singhavon, GTEC Founder Chairman and CEO. “As the organization progresses in the direction of profitability, we will persevere to ensure that Tumbleweed and Grey Bruce become cash flow positive in the near future, while striving to complete the build-outs of GreenTec Bio-Pharma and 3PL.”
In accordance with the Cannabis Act and Regulations, Tumbleweed has immediately commenced cultivation of cannabis plants from a portfolio of high-end cultivars (more commonly known as genetics). Management believes that its combination of unique genetics and experienced cultivation techniques will create a long-term sustainable competitive advantage for the Company and provide resistance to overall price compression.
Tumbleweed is a purpose-built cultivation facility located in Chase, British Columbia. This facility was designed, constructed and equipped in a manner intended to optimize its ability to produce the highest quality cannabis flower. The initial phase of the facility is 10,000 sq. ft. and is projected to produce 1,000 kg of cannabis flower annually, with significant expansion capabilities.
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 currently holds the following licences issued by Health Canada pursuant to the Cannabis Act and Regulations; three Standard Cultivation licences estimated to produce 4,000 kg of indoor flower annually, two Standard Processing licences (for adult-use sales into the Provincial supply chains), two Medical Sales licences (for direct to medical patients), Standard Processing (for extraction), and Analytical Testing.
The management team is comprised of a diverse skill set sourced from leading global food & beverage, CPG and premium alcohol companies. GTEC has completed three cultivation facilities and is currently cultivating and selling cannabis. GTEC’s retail division is pursuing licensing for recreational cannabis stores across Western Canada.
GTEC’s genetic portfolio is comprised of over 30 unique cultivars that have been developed through a comprehensive phenotyping process, which is expected to deliver a sustainable competitive advantage and provide favourable gross margins. 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 download our most recent corporate presentation, please visit our website at www.gtec.co
On behalf of the board,
Founder, Chairman & CEO
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.
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, there can be no assurance that the Company’s overall annual production will increase to 4,000 kg of flower and 1,000 kg of trim; that GTEC will achieve positive cashflow; that the Company’s facilities will enter into full production, output and sales; that GTEC will achieve a weighted average selling price of $5 per gram between both flower and trim; that ACC will successfully transition its sales efforts from B2B to wholesale; that ACC’s average selling price of flower and trim will increase; that GreenTec Bio-Pharma and 3PL facilities (the “Facilities”) will be completed; that upon completion of the Facilities, the Company’s annual production output of flower and trim will increase; that Tumbleweed will be revenue generating; that Tumbleweed will be able to produce the highest quality cannabis flower; that the Company’s genetics and cultivation techniques will create a sustainable competitive advantage for the Company; that Tumbleweed will be able to produce 1,000 kg of cannabis flower annually. 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.
For additional information, please contact:
GTEC Holdings Ltd.