Kelowna, BC – April 20th, 2018 – GreenTec Holdings Ltd. (“GTEC”) is pleased to announce the commencement of cultivation and rebranding of its wholly owned Licensed Producer subsidiary in Edmonton, Alberta. Subsequently, GrenEx Pharms Inc. will hereafter operate as Alberta Craft Cannabis Inc., in order to foster a further alignment with GreenTec’s focus on producing premium quality craft cannabis. Alberta Craft Cannabis recently received its initial shipment of genetics earlier this month, and has since then commenced cultivation at the facility, with a view to acquiring a Sales License, from the Office of Medical Cannabis in a timely manner.
“We are proud to have commenced cultivation at Alberta Craft Cannabis” said Norton Singhavon, Chairman & CEO of GreenTec Holdings. “This is an important milestone on our mission to produce and market premium quality craft cannabis for the Canadian marketplace. We will continue working diligently to complete the construction and licensing of our other facilities, in our quest to become one of Canada’s leading vertically integrated cannabis companies”.
The terms of the transaction are that GTEC is to acquire 100% of issued and outstanding shares of GrenEx based on the following terms: (i) cash payment of $6 million CDN to the vendors; (ii) issuing 16,765,353 GTEC common shares with an implied value of approximately $8,500,000 (approximately $0.5070 per share); and (iii) Upon receiving a “Sales License” from Health Canada’s OMC, issuing common shares of GTEC with an aggregate value of CAD $1,500,000. The aggregate value of this transaction is $16,000,000.
“We’re very excited about the opportunity to work with the team at GTEC. We’ve known Norton and the team for a few years and are pleased to be working with them to accelerate our progress to getting fully operational. The acquisition allows us to be integrated with a larger organization with multiple locations and diversified offerings within the cannabis industry.” said John Simon, CEO of GrenEx Pharms.
“Today is a pivotal milestone for GTEC and its shareholders. The facility and team at GrenEx fit within our objective of obtaining a flagship craft cannabis cultivation facility for GTEC that will also complement our plans to pursue multiple retail storefronts in Alberta. This acquisition will pave the way for GTEC to be one of Canada’s leading vertically integrated cannabis companies.” said Norton Singhavon, Chairman & CEO of GTEC.
GTEC has entered into a binding agreement with Medicron & Accessories Inc. (“Medicron”), a Calgary-based medical marijuana counselling organization which provides safe and reasonable clinic access to medical patients who qualify under Health Canada’s ACMPR. Upon the Province of Alberta completing the regulatory framework for retail cannabis storefronts, Medicron intends to open a minimum of 10 locations in Alberta.
GTEC will commit up to $150,000 per retail storefront location, in return receiving a 25% equity stake, in Medicron. GTEC or its subsidiaries shall be entitled to supply Medicron with a minimum of 80% of the inventory, purchased for the clinics.
About GreenTec Holdings Ltd.
GreenTec Holdings Ltd. (“GTEC”) is Canadian owned and operated in beautiful British Columbia. GTEC’s mission is to identify and consolidate 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 its products are cultivated and sold 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
On behalf of the board,
Chairman & CEO
Co-Founder & Vice President