GTEC Raises $23 Million Selling Units at $0.80

GTEC Announces Closing of $23 Million Bought Deal Public Offering of Units

Kelowna, BC, March 30, 2021 (GLOBE NEWSWIRE) — GTEC Holdings Ltd. d/b/a GTEC Cannabis Co. (TSXV:GTEC) (OTCQB: GGTTF) (FRA: 1BUP) (“GTEC”, the “Company” or “GTEC Cannabis Co.”) announced today the closing of its previously announced bought deal public offering of units (the “Units”) of the Company (the “Offering”). Pursuant to the Offering, GTEC issued 28,750,000 Units at a price of $0.80 per Unit (the “Issue Price”) for aggregate gross proceeds of $23,000,000, which includes the issuance of 3,750,000 Units pursuant to the full exercise of the over-allotment option by the Underwriters (as defined below).

Each Unit consists of one common share of GTEC (a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”) of GTEC. Each Warrant entitles the holder to acquire one Common Share at a price of $1.04 (subject to adjustment in certain circumstances) until March 30, 2024, provided that the Company may accelerate the expiry date of the Warrants on not less than 30 days’ notice if the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the “TSXV”) (or such other nationally recognized stock exchange in Canada or the United States where the Common Shares are then listed and principally traded over such period) is equal to, or greater than, $2.00 for any 10 consecutive trading days following the closing of the Offering, upon the Company providing written notice to the holders of the Warrants within 10 trading days following the end of such 10 day period and issuing a news release announcing the acceleration.

It is anticipated that the Warrants will commence trading on the TSXV on Thursday, April 1, 2021 under the symbol “GTEC.WT”, subject to the satisfaction of all listing conditions.

The Offering was co-led by Desjardins Capital Markets and Eight Capital as co-lead underwriters and joint book runners (collectively, the “Underwriters”), pursuant to the terms of an underwriting agreement entered into between the Company and the Underwriters.

The Offering was made in all provinces of Canada (excluding Québec), pursuant to a short form prospectus dated March 23, 2021 (the “Prospectus”).

The Company intends to use the net proceeds from the Offering to repay indebtedness, to fund expansion of the Company’s operating capacity, fund product development and international expansion opportunities, and for general working capital purposes, as further set out in the Prospectus.

A copy of the Prospectus is available under the Company’s profile on SEDAR at

The securities offered in the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. “United States” and “U.S. person” are as defined in Regulation S under the U.S. Securities Act.

In consideration for their services, the Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering, subject to a reduced fee equal to 3% for Units sold to certain purchasers designated by the Company on a president’s list (the “President’s List”) and non-transferable broker warrants (the “Broker Warrants”) to purchase that number of Common Shares that is equal to 6% of the Units sold in the Offering, subject to a reduced number of Broker Warrants that is equal to 3% of the Units sold to purchasers on the President’s List. Each Broker Warrant is exercisable at the Issue Price to acquire one Common Share for a period of 36 months following the closing of the Offering.

About GTEC

GTEC Cannabis Co. cultivates, markets, and distributes handcrafted, high quality cannabis products. The Company has four operational facilities licenced by Health Canada and is currently distributing cannabis through medical and recreational sales channels.

GTEC’s premium quality recreational cannabis brands includes; BLK MKT™, Tenzo™, Cognoscente™ and Treehugger™, which are crafted from unique cultivars, and sold in British Columbia, Ontario, Saskatchewan, Manitoba and Yukon. The Company’s medical cannabis brand, GreenTec™, is distributed nationwide to qualified patients through its GreenTec Medical website and various licensed partners.

GTEC is a publicly traded corporation, listed on the TSXV (GTEC), OTCQB Venture Market (GGTTF) and Frankfurt Stock Exchange (1BUP). The Company’s headquarters is located in Kelowna, British Columbia and has operations in British Columbia, Alberta and Ontario.

To learn more about the Company or to access the most recent Corporate Presentation, please visit the Company’s website at

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Original press release

Published by NCV Newswire
NCV Newswire
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