Kelowna, BC, Sept. 26, 2019 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (GTEC.V) (GGTTF) (FRA:1BUP) (“GTEC” or the “Company”) announces that the Company’s Chief Executive Officer, Norton Singhavon has filed an early warning report (the "Report") under the Company's profile on SEDAR as summarized below. This press release is being disseminated as required by National Instrument 62-103, The Early Warning System and Related Take-Over Bids and Insider Reporting Issues in connection with the filing of an early warning report.
Prior to the completion of the transaction set forth in the Report, Mr. Singhavon owned 14,115,490 common shares in the capital of GTEC (“Common Shares”) on a partially-diluted basis (after giving effect to the exercise of warrants and options exercisable today or within 60 days) (“partially-diluted basis”), representing beneficial ownership of 11.06% of the outstanding Common Shares calculated on a partially-diluted basis.
On September 26, 2019, Mr. Singhavon acquired ownership of 1,444,768 Common Shares (the "Acquired Shares"), representing 1.14% of the outstanding Common Shares (the "Reportable Event"). Further to the press release issued July 8, 2019, the Acquired Shares were issued at a deemed price of $0.45 per share for an aggregate value of $650,145.60. As a result of the Reportable Event, Mr. Singhavon beneficially owns 15,560,258 Common Shares on a partially-diluted basis, representing beneficial ownership of 12.06% of the outstanding Common Shares calculated on a partially-diluted basis.
Mr. Singhavon has acquired the Acquired Shares for investment purposes only and may, depending on market and other conditions, increase or decrease his beneficial ownership, control or direction over Common Shares or other securities of the Company, through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.
A copy of the early warning report filed by Mr. Singhavon is available under GTEC’s profile on SEDAR at www.sedar.com or by contacting:
Anita H. Boehm, General Counsel of GTEC
335-1632 Dickson Avenue
Kelowna, British Columbia
Alberta Craft - Milestone Payment
The issue to GTEC subsidiary, Alberta Craft Cannabis Inc. (“ACC”), of Standard Processing and Sale for Medical Purposes licenses by Health Canada on July 26, 2019, triggered a final milestone payment due under the arm’s length Share Purchase Agreement dated January 31, 2018 (the “Purchase Agreement”) among the vendors of GrenEx Pharms Inc. (now ACC) (the “Vendors”) and GTEC subsidiary, GreenTec Holdings.
The Purchase Agreement provided for, among other things, a final payment due to the Vendors by way of issuance of common shares of the Company, with an aggregate value of $1,500,000 upon the satisfaction of the granting of a Health Canada license to sell cannabis. Further to approval granted by the TSX Venture Exchange, GTEC has issued an aggregate of 1,200,000 of common shares to the Vendors at a deemed value of $1.25 per share and subject to a statutory hold period of four months and one day from the date of issuance thereof.
Incentive Stock Option Grant
Pursuant to the Company Stock Option Plan (the “SOP”), the Company will grant 400,000 incentive stock options to certain Directors and Officers, which include Chief Operating Officer David Lynn and Directors Aaron Dow and Derek Sanders. In addition, the Company will grant a further 520,000 stock options to employees and consultants of GTEC. All of the above options will have an exercise price of $0.30/share and will vest as follows: 25% immediately, with an additional 25% vesting every 6 months after the date of grant over an 18 month period. Such options will be exercisable for a period of 5 years from the date of grant.
All options are subject to the terms of the SOP, and the requirements of the TSX Venture Exchange and a statutory hold period of four months plus one day from the date of issuance.
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, 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 learn more about the company or to request the most recent corporate presentation, please visit 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 Company’s genetic portfolio will deliver a sustainable competitive advantage and provide favourable gross margins. 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.