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KELOWNA, BC, Jan. 22, 2018 /CNW/ - GreenTec Holdings Ltd. ("GTEC" or the "Company") is pleased to announce the completion of a non-brokered private placement financing (the "Offering"). Pursuant to the Offering, the Company issued an aggregate of 19,233,042 units (the "Units") at a price of $0.60 per Unit for gross proceeds of approximately $11,540,000. Each Unit was comprised of one common share ("Share") of the Company and one-half (1/2) of one Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire one Share at a price of $1.20 until January 19, 2021.
In connection with the Offering, finders' fees were paid in cash to certain eligible finders and 323,160 finders' warrants ("Finders' Warrants") were issued to eligible finders pursuant to the Offering. Each Finders' Warrant entitles the holder to acquire one Share for $1.20 until January 19, 2021.
Proceeds from the Offering will be used to close on the previous announced Letter of Intent ("LOI") with "Project CraftCo" and to fully fund the construction of GreenTec Bio-Pharmaceuticals, Tumbleweed Farms, Grey Bruce Farms and, subject to the entering into of a definitive agreement, Falcon Ridge Farms.
Manitoba Retail Application
GTEC is also pleased to announce that on December 22, 2017, it delivered a competitive response (the "Response") to the Government of Manitoba's Request for Proposals for Retail Cannabis Stores in the Province of Manitoba.
The Response was delivered as part of a joint venture among Apollo Medical Society (a municipally licensed dispensary in the City of Vancouver), The Clinic Network Canada Inc. (which operates a chain of 38 medical cannabis clinics across Canada) and The Tribal Wi-Chi-Way-Win Capital Corporation ("TWCC"). TWCC provides financial resources and business opportunities to qualified Aboriginal entrepreneurs and businesses in Manitoba. TWCC is wholly-owned by five Tribal Councils and five independent Indigenous groups located in Manitoba.
If successful, GTEC intends to have 25 retail locations operational in Manitoba by July 2, 2018, with the ability to roll out an additional 15 locations thereafter in consultation with the province. All retail construction projects and staffing will be, to the best extent possible, sourced through TWCC in order to permit the involvement of as many members of the Indigenous community as possible within the retail network.
The Government of Manitoba is currently reviewing proposals and anticipates announcing the successful applicants by February, 2018.
GTEC has also completed the acquisition of a warehouse located in Kelowna, BC for the purposes of submitting an application to the Office of Controlled Substances for a Dealer's License. The site will be developed in a phased approach and will serve as a Good Manufacturing Practices ("GMP") grade facility with extraction, formulation, compounding and export capabilities to support GTEC's Licensed Producers and the global medical market. GTEC also intends to utilize this facility to manufacture edible products that are expected to be incorporated into Health Canada's regulatory framework in 2019. Upon Health Canada approval of phase one, the facility will be able to produce up to 24,500 grams of cannabis oil per day (equivalent to more than 8,500 kilograms per annum), with capabilities to increase production capacity in future phase development.
"With the closing of this financing, GTEC is now positioned to fully finance the acquisition of Project CraftCo and to complete the construction and development of all of the late stage applicants in our portfolio to be cultivation ready in time for federal legalization of recreational cannabis in Canada. Executing on our plans for cultivation, extraction and retail distribution, we believe that the company is positioned to be one of Canada's leading vertically integrated cannabis companies", said Norton Singhavon, Chairman & CEO of GTEC.
On behalf of the board,
Chairman & CEO
Co-Founder & Vice President
About GreenTec Holdings Ltd.
GreenTec Holdings Ltd. ("GTEC") is Canadian owned and operated in beautiful British Columbia with the mission of identifying and consolidating Licensed Producers of cannabis under Health Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR"). GTEC aims for full vertical integration within the cannabis eco-system to ensure the consumer end-products are cultivated with quality, care, control & consistency every step of the way. GTEC currently has the land capacity of 23,000,000 square feet primarily in BC, and six premium brands within the ACMPR.
To view more about the company or to request our most recent corporate presentation, please visit our website at www.gtec.co
Forward Looking Information
Certain statements in this news release contain forward-looking statements which can be identified by the use of forward-looking terminology such as "believes", "expects", "may", "desires", "will", "should", "projects", "estimates", "contemplates", "anticipates", "intends", or any negative such as "does not believe" or other variations thereof or comparable terminology. No assurance can be given that potential future results, events or circumstances described in the forward-looking statements will be achieved or will occur on a timely basis or at all. By their nature, these forward-looking statements, necessarily involve risks and uncertainties, including those discussed herein, that could cause actual results, events or circumstances to significantly differ from those contemplated by these forward-looking statements. Such statements reflect the view of the Company with respect to future results, events or circumstances, and are based on information currently available to the Company and on assumptions, which it considers reasonable. Management cautions readers that the assumptions relative to the future results, events or circumstances, several of which are beyond Management's control, could prove to be incorrect, given that they are subject to certain risks and uncertainties, and that actual results may differ materially from those projected. Factors which could cause results or events or circumstances to differ from current expectations include, among other things: construction delays, weather issues, delays in getting required permits, fluctuations in operating results; the impact of general economic, industry and market conditions; the ability to recruit and retain qualified employees; fluctuations in cash flow; expectations regarding market demand for particular products and the dependence on new product development; the impact of market change; and the impact of price and product competition. Management 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 applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
SOURCE GreenTec Holdings
For further information: To view more about the company or to request our most recent corporate presentation, please visit our website at www.gtec.co