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GTEC Holdings Ltd. (TSXV:GTEC, OTC:GGTTF, FRA:1BUP) (“GTEC” or the “Company”) is pleased to announce that due to overwhelming demand, it has further upsized its previously announced private placement offering led by Sprott Capital Partners LP (the “Agent”) to up to 18,181,818 units of the Company (each a “Unit” and collectively, the “Units”) for gross proceeds of up to $10,000,000. The Company closed the first tranche of its previously announced private placement on February 28, 2019 by issuing 11,126,753 Units of the Company for gross proceeds of $6,119,714.15.
The Agent has the option to increase the size of the Offering by up to 25% (the “Agent’s Option”) for additional gross proceeds of up to $2,500,000, which Agent’s Option is exercisable, in whole or in part, at any time up to 48 hours prior to the final closing date of the Offering.
GTEC intends to issue up to an aggregate of 22,727,27 Units (including pursuant to any exercise of the Agent’s Option) at a price of $0.55 per Unit. Each Unit shall consist of one common share in the capital of the Company (the “Common Shares”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant” and collectively, the “Warrants”), with each Warrant exercisable at $0.90 for a period of 24 months from the date of issuance. The Warrants are subject to an acceleration clause that allows the Company to accelerate the expiry date of the Warrants to 30-days from delivery of such notice, in the event that the volume weighted average price of the Common Shares on the TSX Venture Exchange (the “Exchange”) equals or exceeds $1.50 for 20 consecutive trading days.
The Company has agreed to pay the Agent, other than in respect of certain purchases, (i) a cash commission equal to 6% of the gross proceeds of the Offering (including pursuant to any exercise of the Agent’s Option) and (ii) broker warrants (each a “Broker Warrant”) in a number equal to 6% of the number of Units sold under the Offering (including pursuant to any exercise of the Agent’s Option). Each Broker Warrant shall be exercisable to acquire one Unit at $0.55 for a period of two years from closing.
The net proceeds of the Offering will be used for general corporate and working capital purposes. The second tranche close of the Offering is expected to occur on or about March 19th, 2019 and is subject to receipt of all necessary regulatory approvals, including the approval of the Exchange. All securities issued pursuant to the Offering will be subject to a statutory hold period lasting four months and one day following the closing date of each tranche of the Offering.
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 is currently licensed by Health Canada for Standard Cultivation, Standard Processing and Analytical testing. The management team is comprised of a diverse skill set sourced from leading global food & beverage and premium alcohol companies. GTEC has completed three cultivation facilities and is currently cultivating and selling cannabis. The Company has two additional facilities coming on stream in the latter half of 2019, which will increase annual capacity from 4,000 kg to 14,000 kg. GTEC’s retail division is pursuing licensing for over 35 recreational cannabis stores across Western Canada. GTEC’s ultra-premium indoor flower will be marketed and sold under its flagship trademarked brands; BLK MKT, Tenzo, GreenTec, Cognōscente, FN, and Treehugger. The Company 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 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,
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.
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. 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.
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