KELOWNA, BC, Dec. 3, 2018 /CNW/ - GTEC Holdings Ltd. (TSXV:
GTEC) (OTC: GGTTF) ("GTEC" or the "Company") is
pleased to announce that pursuant to the Loan Agreement with
Invictus MD Strategies (TSXV:GENE; OTC:IVITF; FRA:8IS1)
("Invictus") dated October 17,
2018, as amended on October 19,
2018 and on November 21, 2018
(the "Agreement"), as announced on November 16, 2018, it has completed the draw down
of $500,000 of convertible debt.
Pursuant to the Agreement, the Company has drawn down the aggregate
of $2.5 million convertible debt (the
"Convertible Debt"), evidenced by way of a Convertible Grid
Promissory Note (the "Promissory Note"). The Company intends
to use the proceeds to further execute its cannabis retail
expansion strategy in Canada in
connection with the non-binding letter of intent between GTEC and
Invictus announced on November 16,
2018.
The terms of the Promissory Note are as follows:
- the Convertible Debt shall bear interest at the rate of 8% per
annum, calculated and paid in arrears;
- GTEC shall repay the Convertible Debt on or prior to
October 19, 2020 (the "Maturity
Date");
- Invictus may convert the Convertible Debt, in whole or in part,
into common shares in the capital of GTEC ("Common Shares")
at a price of $1.50 per Common Share,
at any time prior to the last business day immediately preceding
the Maturity Date, subject to approval of the TSX Venture Exchange;
and
- the convertible loan facility may be increased up to
$6 million at any time prior to the
Maturity Date, upon mutual agreement of both parties.
The Promissory Note and any Common Shares issued upon conversion
of the Promissory Note will be subject to a four month hold period
from the date of issuance of the Promissory Note in accordance with
applicable Canadian securities laws.
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., Alberta Craft Cannabis Inc. Grey Bruce
Farms Inc., Tumbleweed Farms Corp., Zenalytic Laboratories Ltd.,
and Spectre Labs Inc.
To view more about the company or to request our most recent
corporate presentation, please visit our website
at www.gtec.co.
On behalf of the board,
Norton Singhavon
Founder, Chairman & CEO
ns@gtec.co
Michael Blady
Co-Founder & Vice President
mb@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 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. Investors are cautioned that, except as
disclosed in the Filing Statement any information released or
received may not be accurate or complete and should not be relied
upon. Trading in the securities of the Company should be considered
highly speculative. 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.
SOURCE GreenTec Holdings