Kelowna, BC, March 08, 2021 (GLOBE NEWSWIRE) -- GTEC Holdings Ltd. (TSXV:GTEC) (OTCQB: GGTTF) (FRA: 1BUP) (“GTEC”, the “Company” or “GTEC Cannabis Co.”) a multi-licensed producer of handcrafted, high quality cannabis, is pleased to announce the signing of an export deal pertaining to the Israeli medical cannabis market (the “Agreement”).
Executes multi-year agreement to export a minimum of 500 KG annually to Israel, one of the world’s largest import markets for medical cannabis
Agreement enables GTEC to enter into global distribution of its handcrafted ultra-premium flower
Export deal demonstrates the demand for GTEC products within Canada and globally
The Company has entered into an agreement with Focus Medical Herbs Ltd. ("Focus Medical"), an Israeli medical cannabis company with which IM Cannabis Corp. (“IMC”) (NASDAQ: IMCC) has exclusive distribution agreements to export cannabis from Canada to Israel, subject to meeting all regulatory requirements both in Israel and Canada. Under the terms of this agreement, GTEC is expected to become a key supplier of cannabis to Focus Medical. The Company’s initial shipments of cannabis will be produced by its wholly-owned subsidiary, Grey Bruce Farms (“GBF”), located in Tiverton, Ontario, with the expectation that GTEC will export 500 to 1,000 KG per year.
Michael Blady, Co-founder and VP of GTEC commented, "We are very excited to sign this agreement adding our ultra-premium product to the well-known IMC brand in Israel, this demonstrates the robust demand for GTEC products within Canada and globally. With the signing of this deal, GTEC will become an up-and-coming player within the global cannabis market, while continuing to drive significant incremental revenues and gross margin.”
“Medical cannabis patients in Israel are starting to demand more imported indoor products from Canada. By partnering with GTEC to supply high-THC flower from its Canadian indoor facility, IMC is leveraging this increasing demand from patients and will, for the first time, bring into Israel a truly ultra-premium quality product. We are thrilled about the launch of this new category and expect to grow its market share domestically,” Oren Shuster, Chief Executive Officer of IMC commented.
In order to qualify as a supplier to the Israeli medical cannabis market, GBF successfully completed a rigorous audit process conducted by The Institute of Quality & Control (“IQC), the largest private certification body in Israel. This comprehensive audit process covered all aspects of the GBF operations, including cultivation, quality assurance and human resources. As a result, GBF has received its ICANN-G.A.P (Good Agricultural Practices) accreditation from IQC.
The Company considers the Agreement to reinforce GTEC's competitive advantage in the production of ultra-premium cannabis. Currently there are more than 320 Standard Cultivation Licences issued by Health Canada, and being selected as Focus Medical's key supplier demonstrates the quality and demand of GTEC's products. The Company will continue to evaluate opportunities within the global cannabis market, with the objective to further expand its global distribution channels.
About IM Cannabis Corp.
IMC is a multi-country operator (MCO) in the medical cannabis sector headquartered in Israel and with operations In Israel and Germany. Over the past decade, the IMC brand has become synonymous with quality and consistency in the Israeli medical cannabis market. IMC has also expanded its business to offer intellectual property-related services to the medical cannabis industry.
In Europe, IMC operates through Adjupharm, a German-based subsidiary and EU-GMP certified medical cannabis distributor. IMC’s European presence is augmented by strategic alliances with various pan-European EU-GMP cultivators and distributors to capitalize on the increased demand for medical cannabis products in Europe and bring the IMC brand and its product portfolio to European patients.
About Focus Medical Herbs Ltd.
Focus Medical is one of eight original licensed producers of medical cannabis in Israel and has over 10 years of experience growing high-quality medical cannabis in the Israeli market. Focus Medical is an “investee” of IMC under IFRS due to the IMC’s “de facto control” over Focus Medical, despite not having any direct or indirect ownership of it. Focus Medical has an exclusive commercial agreement with IMC to distribute its production under the IMC brand. In addition to its own capacity, Focus Medical has signed supply agreements with other cultivators for additional supply using its proprietary genetics and for sale under the IMC brand.
For parties interested in global export opportunities, please contact:
Michael Blady - Co-Founder and Vice President
Non-Brokered Private Placement
The Company is also pleased to announce that it has completed its previously announced non-brokered private placement (the “Offering”) of 13,750,000 units (each, a “Unit”) at a price $0.20 per Unit for gross proceeds of $2,750,000. Each “Unit” issued in the placement consists of one common share and one half of one share purchase warrant entitling the holder to purchase one additional share at $0.30 for a period of three years from closing of the Offering.
The Company filed for price reservation based on the closing price per common share of $0.245 on February 5, 2021 (which was the 52-week high for the Common Shares as of February 5, 2021). Commitments to subscribe in the Offering that were received on or before the close of markets on February 9, 2021, totaled $2.75 million. Further commitments were later received with demand significantly exceeding the $4 million, however as a result of the increase in the Company’s share price, the Company elected to close the book and not accept any further commitments. All securities issued pursuant to the Offering are subject to a statutory hold period lasting four months and one day following the closing of the Offering.
About GTEC Cannabis Co
GTEC Cannabis Co. cultivates, markets and distributes premium cannabis products. The Company has four operational facilities licensed by Health Canada and currently distributes cannabis through medical and recreational sales channels. GTEC’s recreational product portfolio is crafted from unique cultivars and marketed under its BLK MKT™ , Tenzo™, Cognōscente™ and Treehugger™ brands. The Company’s medical cannabis brand, GreenTec™, is distributed nationally to qualified patients through its through its GreenTec Medical web-site and various licensed partners.
GTEC is a publicly traded corporation, listed on the TSX Venture Exchange (GTEC), OTCQB Venture Market (GGTTF) and Frankfurt Stock Exchange (1BUP). The Company’s headquarters is located in Kelowna, B.C. and it has operations in the Canadian provinces of British Columbia, Alberta and Ontario.
To learn more about the Company or to access the most recent Corporate Presentation, please visit our website at www.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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation (collectively, “forward -looking statements”). Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as “intend,” “goal,” “strategy,” “estimate,” “expect,” “project,” “projections,” “forecasts,” “plans,” “seeks,” “anticipates,” “potential,” “proposed,” “will,” “should,” “could,” “would,” “may,” “likely,” “designed to,” “foreseeable future,” “believe,” “scheduled” and other similar expressions. The forward-looking statements contained herein may include, but are not limited to, GTEC becoming a key supplier of cannabis to Focus Medical, the expectation that GTEC will export 500 to 1,000 KG of cannabis per year to Focus Medical, GTEC becoming an up-and-coming player within the global cannabis market, while continuing to drive significant incremental revenues and gross margin, and the Agreement reinforcing GTEC's competitive advantage in the production of ultra-premium cannabis. 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. For instance and among other things, there are risks that the COVID-19 pandemic may disrupt the Company’s operations, those of the Company’s suppliers and distribution channels and negatively impact the use of the Company’s products, the Company may not be able to successfully ship to Israel and generate positive gross margins; issues compliance with applicable environmental, economic, health and safety, energy and other policies and regulations with respect to the use of cannabis; actions of third parties such as competitors, activist investors or federal, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; changes in regulatory requirements in relation to the Company’s business and products. Accordingly, readers should not place undue reliance on forward-looking statements, which speak only as of the date of this news release. 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.
CONTACT: For additional information, please contact: GTEC Cannabis Co. 1-800-351-6358 firstname.lastname@example.org