$GTEC Signs Binding Letter of Intent For 240K Sq.
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Posted On: 09/17/2018 1:16:40 PM
$GTEC Signs Binding Letter of Intent For 240K Sq. Ft. Expansion Site In BC
KELOWNA, BC, July 11, 2018 /CNW/ – GTEC Holdings Ltd. (TSXV: GTEC) (“GTEC” or the “Company”) is pleased to announce that on June 10th, 2018 it entered into an exclusive binding letter of intent (“LOI”) with F-20 Developments Corp. (“F-20”) to develop a 240,000 sq. ft. indoor cultivation facility located in Vernon, British Columbia.
GreenTec Holdings (CNW Group/GreenTec Holdings)
F-20, a privately held corporation whose principals have been involved in the financing and construction of licensed cultivation facilities in Canada and the U.S, has secured a property (the “Property”) with an existing 60,000 sq. ft. building that will be retrofitted as part of the first phase of construction to allow for the cultivation of cannabis (“Phase 1”). A second phase of the project will see the construction of a secondary purpose-built building to be 180,000 sq ft. in size. Phase 1 construction is expected to commence immediately upon the parties finalizing the definitive and ancillary agreements, and upon GTEC and F-20 incorporating a new company (“NewCo”).
F-20 has committed to fund the large majority of the Phase 1 project costs up to $9,000,000, with GTEC committing to fund the final $1 million towards the estimated $10 million budget to complete Phase 1. As consideration for F-20 entering into this arrangement, upon execution of the definitive agreements, GTEC shall issue to F-20 common shares (the “Consideration Shares”) equivalent to $2.5M at a deemed price equal to the 10-day volume-weighted average trading price of such shares, where the Consideration Shares are subject to performance milestones related to the construction of Phase 1. GTEC will have an option to acquire all of F-20’s issued and outstanding shares of NewCo at a pre-determined valuation metric based on annual production capacity. NewCo will also have an option to purchase the Property at its fair market value pursuant to the terms of its lease subject to a predetermined floor and ceiling price.
F-20 will be the project manager and be responsible for the Project’s Phase 1 construction and building retrofit, supported with oversight and guidance from GTEC’s operations and regulatory team.
“This project with F-20 further increases our production capacity in BC, which positions the Company one step closer to realizing our objectives.” said Norton Singhavon, Chairman and CEO of GTEC Holdings. “The Property is ideally located to maximize synergies with GTEC’s existing production and laboratory facilities. The ability to utilize F-20’s financial capacity and construction expertise will allow for GTEC to maintain focus on building and operating our existing facilities, while leveraging our expertise to further foster the Company’s growth strategy.”
Closing will be subject to a number of conditions including completion of due diligence by GTEC, execution by NewCo of a lease for the Property, a Shareholders’ Agreement for NewCo, and an Initial Supply Agreement between NewCo and GTEC and/or its subsidiaries, as applicable, as well as GTEC Board of Directors’ and regulatory approval.
About GTEC
GTEC was founded in 2017 to capitalize on opportunities in the nascent and rapidly growing legal cannabis industry. GTEC is a public corporation listed on the TSX Venture Exchange and based in Kelowna, British Columbia. GTEC is focused on growing premium quality craft cannabis in purpose-built indoor facilities. GTEC currently holds a 100% interest in GreenTec Bio-Pharmaceuticals Corp., Grey Bruce Farms Inc., Zenalytic Laboratories Ltd., Falcon Ridge Naturals Ltd., Alberta Craft Cannabis Inc., and Tumbleweed Farms Corp.
To view more about the company or to request our most recent corporate presentation, please visit our website at www.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 include, but are not limited to, statements regarding the ability of F-20 and the Company complete Phase 1 and Phase 2 and their respected funding requirements, successful completion of the acquisition and the ability of the Company and F-20 to meet all the conditions precedent to the transaction and the ability of GTEC to become a leading craft cannabis company in Canada. 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.
Disclaimer:
Spotlight Growth is compensated, either directly or via a third party, to provide investor relations services for its clients. Spotlight Growth creates exposure for companies through a customized marketing strategy, including design of promotional material, the drafting and editing of press releases and media placement.
All information on featured companies is provided by the companies profiled, or is available from public sources. Spotlight Growth and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on external sources that Spotlight Growth believes to be reliable, but its accuracy is not guaranteed. Spotlight Growth may create reports and content that has been compensated by a company or third-parties, or for purposes of self-marketing. Spotlight Growth was compensated two thousand five hundred dollars cash for the creation and dissemination of this content.
This material does not represent an investment solicitation. Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management.
The above communication, the attachments and external Internet links provided are intended for informational purposes only and are not to be interpreted by the recipient as a solicitation to participate in securities offerings. Investments referenced may not be suitable for all investors and may not be permissible in certain jurisdictions.
Spotlight Growth and its affiliates, officers, directors, and employees may have bought or sold or may buy or sell shares in the companies discussed herein, which may be acquired prior, during or after the publication of these marketing materials. Spotlight Growth, its affiliates, officers, directors, and employees may sell the stock of said companies at any time and may profit in the event those shares rise in value. For more information on our disclosures, please visit: http://spotlightgrowth.com/index.php/disclosures/
KELOWNA, BC, July 11, 2018 /CNW/ – GTEC Holdings Ltd. (TSXV: GTEC) (“GTEC” or the “Company”) is pleased to announce that on June 10th, 2018 it entered into an exclusive binding letter of intent (“LOI”) with F-20 Developments Corp. (“F-20”) to develop a 240,000 sq. ft. indoor cultivation facility located in Vernon, British Columbia.
GreenTec Holdings (CNW Group/GreenTec Holdings)
F-20, a privately held corporation whose principals have been involved in the financing and construction of licensed cultivation facilities in Canada and the U.S, has secured a property (the “Property”) with an existing 60,000 sq. ft. building that will be retrofitted as part of the first phase of construction to allow for the cultivation of cannabis (“Phase 1”). A second phase of the project will see the construction of a secondary purpose-built building to be 180,000 sq ft. in size. Phase 1 construction is expected to commence immediately upon the parties finalizing the definitive and ancillary agreements, and upon GTEC and F-20 incorporating a new company (“NewCo”).
F-20 has committed to fund the large majority of the Phase 1 project costs up to $9,000,000, with GTEC committing to fund the final $1 million towards the estimated $10 million budget to complete Phase 1. As consideration for F-20 entering into this arrangement, upon execution of the definitive agreements, GTEC shall issue to F-20 common shares (the “Consideration Shares”) equivalent to $2.5M at a deemed price equal to the 10-day volume-weighted average trading price of such shares, where the Consideration Shares are subject to performance milestones related to the construction of Phase 1. GTEC will have an option to acquire all of F-20’s issued and outstanding shares of NewCo at a pre-determined valuation metric based on annual production capacity. NewCo will also have an option to purchase the Property at its fair market value pursuant to the terms of its lease subject to a predetermined floor and ceiling price.
F-20 will be the project manager and be responsible for the Project’s Phase 1 construction and building retrofit, supported with oversight and guidance from GTEC’s operations and regulatory team.
“This project with F-20 further increases our production capacity in BC, which positions the Company one step closer to realizing our objectives.” said Norton Singhavon, Chairman and CEO of GTEC Holdings. “The Property is ideally located to maximize synergies with GTEC’s existing production and laboratory facilities. The ability to utilize F-20’s financial capacity and construction expertise will allow for GTEC to maintain focus on building and operating our existing facilities, while leveraging our expertise to further foster the Company’s growth strategy.”
Closing will be subject to a number of conditions including completion of due diligence by GTEC, execution by NewCo of a lease for the Property, a Shareholders’ Agreement for NewCo, and an Initial Supply Agreement between NewCo and GTEC and/or its subsidiaries, as applicable, as well as GTEC Board of Directors’ and regulatory approval.
About GTEC
GTEC was founded in 2017 to capitalize on opportunities in the nascent and rapidly growing legal cannabis industry. GTEC is a public corporation listed on the TSX Venture Exchange and based in Kelowna, British Columbia. GTEC is focused on growing premium quality craft cannabis in purpose-built indoor facilities. GTEC currently holds a 100% interest in GreenTec Bio-Pharmaceuticals Corp., Grey Bruce Farms Inc., Zenalytic Laboratories Ltd., Falcon Ridge Naturals Ltd., Alberta Craft Cannabis Inc., and Tumbleweed Farms Corp.
To view more about the company or to request our most recent corporate presentation, please visit our website at www.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 include, but are not limited to, statements regarding the ability of F-20 and the Company complete Phase 1 and Phase 2 and their respected funding requirements, successful completion of the acquisition and the ability of the Company and F-20 to meet all the conditions precedent to the transaction and the ability of GTEC to become a leading craft cannabis company in Canada. 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.
Disclaimer:
Spotlight Growth is compensated, either directly or via a third party, to provide investor relations services for its clients. Spotlight Growth creates exposure for companies through a customized marketing strategy, including design of promotional material, the drafting and editing of press releases and media placement.
All information on featured companies is provided by the companies profiled, or is available from public sources. Spotlight Growth and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on external sources that Spotlight Growth believes to be reliable, but its accuracy is not guaranteed. Spotlight Growth may create reports and content that has been compensated by a company or third-parties, or for purposes of self-marketing. Spotlight Growth was compensated two thousand five hundred dollars cash for the creation and dissemination of this content.
This material does not represent an investment solicitation. Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management.
The above communication, the attachments and external Internet links provided are intended for informational purposes only and are not to be interpreted by the recipient as a solicitation to participate in securities offerings. Investments referenced may not be suitable for all investors and may not be permissible in certain jurisdictions.
Spotlight Growth and its affiliates, officers, directors, and employees may have bought or sold or may buy or sell shares in the companies discussed herein, which may be acquired prior, during or after the publication of these marketing materials. Spotlight Growth, its affiliates, officers, directors, and employees may sell the stock of said companies at any time and may profit in the event those shares rise in value. For more information on our disclosures, please visit: http://spotlightgrowth.com/index.php/disclosures/
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