Kelowna, BC February 7th, 2018 – GreenTec Holdings Ltd. (“GTEC” or the “Company”) is pleased to announce that it has acquired 100% of the issued and outstanding shares of Falcon Ridge Naturals Ltd. (“Falcon Ridge”), a Late Stage Applicant under Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”) for a total aggregate transaction value of $1,200,000 as described herein.
Falcon Ridge is a certified organic farm located in Kelowna, B.C. It specializes in growing Echinacea Angustifolia and producing organic echinacea products. Falcon Ridge follows GMP and HACCP protocols to help ensure product safety, and it currently holds three NHP product licenses from Health Canada. GTEC has already prepared plans to build a 10,000 square feet production facility on the property, which will be capable of producing 1 million grams of organically cultivated cannabis annually.
The application for Falcon Ridge was previously submitted under 365313 B.C. Ltd. (Application 10-MM0006 with Health Canada) and received its Confirmation of Readiness Letter from Health Canada on September 23, 2017. The land is leased from the vendor of the transaction, in respect of the proposed production site (the “Lands”) and also has a right of first refusal in respect of purchasing the Lands. The lease is for an initial term, after construction, of five years with three further rights to renew for five-year terms.
The terms of the transaction included the acquisition by GTEC of 100% of the issued and outstanding shares of Falcon Ridge based on the following terms: (i) a cash payment of $200,000 CDN to the vendor at Closing; (ii) a cash payment of $100,000 CDN upon the receipt by Falcon Ridge of a building permit by the City of Kelowna for the construction of a production facility on the Premises by May 1, 2018; and (iii) a cash payment of $900,000 no later than ten (10) days from the date that Falcon Ridge receives a “Sales License” from Health Canada’s Office Of Medical Cannabis. The aggregate value of this transaction is $1,200,000.
“We are pleased to increase our capability of being a leading provider of organic cannabis products in our community and beyond. We are excited to be in this industry at this time and with GTEC’s team we are hoping to create an incredible venue on our farm for education, research and access of top quality cannabis products.” said Marlys Wolfe, Founder & Director of Falcon Ridge.
“The Falcon Ridge Farms acquisition provides an excellent fit with our strategic objective of becoming a leading producer of premium quality craft cannabis. We are particularly excited to be able to tap into the expertise of a local company in order to expand our product line into the organic segment.” said Norton Singhavon, Chairman & CEO of GTEC
GTEC is pleased to welcome Derek Sanders as an independent Director to the Board. Derek Sanders is a partner at Spence Valuation Group, where he specializes in business valuation, mergers and acquisitions and financial litigation support. Prior to joining SVG, he worked for national firms in valuations, transaction advisory and audit roles, in London, Kelowna and Vancouver.
Mr. Sanders has extensive experience in the valuation of privately-held companies in support of purchase and sales transactions, shareholder disputes, corporate reorganizations and estate freezes. Derek has also prepared business valuations and guideline income calculations for family law purposes, loss quantification analyses and limited critique reports for litigation purposes and has advised numerous business owners through the marketing and sale of their businesses. He has experience with businesses operating in a variety of industries including a broad range of manufacturing industries, service, construction, distribution, technology, and retail.
Mr. Sanders is a Chartered Professional Accountant (CPA), a Chartered Business Valuator (CBV) and a Chartered Financial Analyst (CFA). He serves on the CICBV Board of Directors, acts as Chair of the CICBV Education Committee, and is an active member of the Okanagan CFA Society.
“I am thrilled to be joining the Board of GTEC. Norton and his team have built a great platform for a vertically integrated cannabis business with a clear market vision and I am excited to participate in its future growth.” said newly-appointed Director Derek Sanders.
“We are extremely excited to welcome Mr. Sanders to join the Board. With his diverse skill set and experience, along with his entrepreneurial drive, Mr. Sanders will make for a great addition to the Board. We are looking forward to the road that lies ahead together in our journey of becoming one of Canada’s leading vertically integrated cannabis companies.” said Norton Singhavon, Chairman and CEO of GTEC.
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 Presiden
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated use of funds from the Offering; the anticipated benefits of management’s accomplishments the Company and their respective shareholders; the timing and receipt of the required shareholder, stock exchange and regulatory approvals for the Company; the length of the current market cycle and requirements for an issuer to survive in the current market cycle; future growth potential of the Company; and future development plans. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: satisfaction or waiver of all applicable conditions to the completion of the Company’s future plans (including receipt of all necessary shareholder, stock exchange and regulatory approvals or consents, where applicable, and the absence of material changes with respect to the parties and the Company’s business; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the availability of capital to fund planned expenditures; prevailing regulatory, tax and environmental laws and regulations; the ability to secure necessary personnel, equipment and services; volatility in market prices for medical marijuana; risks and liabilities inherent in medical marijuana operations; competition for, among other things, capital, acquisitions of lands and greenhouses and skilled personnel; incorrect assessments of the value of acquisitions and development programs; technical and processing problems; actions by governmental authorities, including increases in taxes; the availability of capital on acceptable terms; fluctuations in foreign exchange, currency, or interest rates and stock market volatility; risks and hazards associated with the business of marijuana cultivation, production and sales; inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on the cultivation, production or sale of marijuana; employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.