Kelowna, BC, March 01, 2021 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSXV:GTEC) (OTCQB: GGTTF) (FRA: 1BUP) (“GTEC”, the “Company” or “GTEC Cannabis Co.”) a multi-licensed producer of handcrafted, high quality cannabis, is pleased to announce that it has repaid its Unsecured Convertible Promissory Note (the “Note”) with Invictus MD Strategies Corp. (“Invictus”) in full.
The Note, which was amended on October 30, 2020 had a principal balance of approximately $2 million, which carried an annual interest rate of 10%. During the most recent 30-day period, the Company made a series of payments, which fully repaid the principal balance of the loan and all accrued interest.
The Company would like to reiterate its dedication to operate in a fiscally disciplined manner while building long-term shareholder value. The Company will continue evaluating opportunities to eliminate or reduce its debt, and to reduce operational expenses, while striving to increase its revenue and gross margins.
Retail Location – Divestment
The Company has also successfully completed the sale of its last remaining retail asset (the “Vancouver Store”). The Company completed an asset sale for total proceeds of $500,000, which was paid in cash upon the closing. The Company previously had a retail store strategy, where GTEC would own and operate retail locations across various Provinces. Following a strategic review, management concluded that the Company would not be able to achieve a sustainable competitive advantage in the retail cannabis space, competing against larger competitors with a stronger presence in the sector, who would ultimately be customers of GTEC’s recreational brands. Accordingly, the Company has divested of all its retail assets.
Non-Brokered Private Placement
At market close on Friday, February 5, 2021, the Company commenced a non-brokered private placement (the “Offering”) of units (each, a “Unit”) at a price of $0.20 per Unit for gross proceeds of up to $4 million. Each Unit consists of one common share of the Company (each, a “Common Share”) and one-half of a common share purchase warrant, exercisable at a price of $0.30 per Common Share exercisable for a term of three-years from the closing of the Offering.
The Company filed for price reservation based on the closing price per Common Share of $0.245 on February 5, 2021 (which was the 52-week high for the Common Shares as of February 5, 2021). Commitments to subscribe in the Offering that were received on or before the close of markets on February 9, 2021, totaled $2.75 million. Further commitments were later received with demand significantly exceeding the $4 million, however as a result of the increase in the Company’s share price, the Company elected to close the book and not accept any further commitments. Subject to the approval of the TSX Venture Exchange (the “TSXV”), the Company intends to close the initial $2.75 million that was committed prior to the increase of the Company’s share price.
Closing of the Offering remains subject to the approval of the TSXV. All securities issued pursuant to the Offering will be subject to a statutory hold period lasting four months and one day following the closing of the Offering.
Further to the Company’s press release dated February 24, 2021, the Company, at the request of the TSX Venture Exchange (the “TSXV”), announced that it had applied to for an extension to the expiry date on 11,126,753 common share purchase warrants (the “Warrants”) issued in February and March of 2019. On February 26, 2021, following the close of markets, the TSXV informed the Company that it was not yet prepared to approve the extension to the expiry date of the Warrants. Accordingly, the first tranche of Warrants issued in February 2019 have now expired in accordance with their terms. In order to ensure equal treatment of all holders of Warrants from the 2019 financing, the Company will not extend the expiry date of the Warrants issued in March 2019.
About GTEC Cannabis Co
GTEC Cannabis Co cultivates, markets, and distributes the high-end cannabis products that consumers desire. The Company has four operational facilities licensed by Health Canada and is currently distributing cannabis through medical and recreational sales channels.
GTEC’s quality product offering is crafted from rare and unique cultivars. GTEC’s recreational cannabis brands include BLK MKT™, Tenzo™, Cognōscente™ and Treehugger™. The Company’s medical cannabis brand, GreenTec™, is distributed nationally to qualified patients through its GreenTec Medical website and various licensed partners.
GTEC is a publicly traded corporation, listed on the TSX Venture Exchange (GTEC), OTCQB Venture Market (GGTTF) and Frankfurt Stock Exchange (1BUP). The Company’s headquarters is located in Kelowna, B.C. and has operations in B.C., Alberta and Ontario.
To learn more about the Company or to access the most recent Corporate Presentation, please visit our website at www.gtec.co
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking information” as defined under applicable Canadian securities legislation. Forward-looking information is 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 information. The forward-looking information in this news release is generally identified by use of such terms and phrases as “intend,” “goal,” “strategy,” “estimate,” “expect,” “project,” “projections,” “forecasts,” “plans,” “seeks,” “anticipates,” “potential,” “proposed,” “will,” “should,” “could,” “would,” “may,” “likely,” “designed to,” “foreseeable future,” “believe,” “scheduled” and other similar expressions. Examples include statements that the Company will reduce its debt, reduce operational expenses or increase its revenue and gross margins; that the terms of the Offering will be approved by the TSXV; and that the Offering will occur on the terms currently anticipated.
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, such risks include that the TSXV does not approve the terms of the Offering; the Company will maintain adequate capital resources and liquidity, including but not limited to, availability of sufficient cash flow, to execute the Company’s business plan (either within the expected timeframe or at all); there can be no assurances regarding potential effects of judicial or other proceedings on the Company’s business, financial condition, results of operations and cash flows; volatility in and/or degradation of general economic, market, industry or business conditions; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to the use of cannabis; the anticipated effects of actions of third parties such as competitors, activist investors or federal, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; changes in regulatory requirements in relation to the Company’s business and products; 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.
Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For additional information, please contact: GTEC Cannabis Co. 1-800-351-6358 firstname.lastname@example.org