GTEC provides update on acquisition of Canopy Growth cultivation facility
GTEC Holdings provided an update to its plans to acquire a cultivation facility located in Kelowna, British Columbia. On July 22, 2019 GTEC issued a news release regarding its plans to acquire a Kelowna cultivation facility from Canopy Growth Corporation. This facility is purpose-built to produce premium cannabis, near completion, and will have estimated annual output of 4,000 KG when complete. GTEC and Canopy Growth have entered into an Amending Agreement that extends the Purchaser's Condition Waiver Date to September 16, 2019. This extension provides GTEC with additional time to pursue satisfactory financing options in order to complete the transaction. GTEC would also like to confirm that based on current market conditions, it does not intend to finance this acquisition by issuing equity or convertible equity/debt instruments at an issuance price less than its most recent financing which closed on March 21, 2019. The company is currently exploring alternative financing options, including commercial debt and/or divesting of certain non-core non-operational assets. If the company is unable to obtain financing that is satisfactory to its Board of Directors; then it will not proceed with the transaction and be entitled to a full refund of its $250,000 deposit, without any further liabilities, penalties or obligations.