KELOWNA, BC, Feb. 2, 2018 /CNW/ - GreenTec Holdings Ltd. ("GTEC" or the "Company") is pleased to announce that it has acquired 100% of the issued and outstanding shares of GrenEx Pharms Inc ("GrenEx"), a Licensed Producer under Health Canada's Access to Cannabis for Medicinal Purposes Regulations ("ACMPR") as previously announced in the Company's November 23rd, 2017 news release, titled "Project CraftCo".
GrenEx, based in Edmonton Alberta, received its Cultivation License from the Office of Medical Cannabis ("OMC") on September 29th, 2017. GrenEx has a fully built out and operationally ready 14,000 square foot facility capable of producing 1300kg of high quality indoor craft cannabis annually, with expansion capabilities at the current location. GTEC will immediately commence cultivation at the facility. Genetics have been sourced and are expected to arrive within the next 14 days. GTEC will implement its proprietary cultivation regiment, which has previously been successful in obtaining a "Sales License" from the OMC at another Licensed Producer under the ACMPR. GTEC also intends to immediately commence the application process with Health Canada for a Secondary Site application, utilizing the over 20,000,000 square feet of expansion capabilities within the GTEC portfolio.
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.
On behalf of the board,
Chairman & CEO
Co-Founder & Vice President
Cautionary Note Regarding 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.