GTEC Holdings Ltd. (GTEC.V) (GTTF) Signs Agreement With Invictus To Support Cannabis Retail Expansion

GTEC Holdings Ltd. (TSXV:GTEC.V – News) (OTCPK:GGTTF – News) (“GTEC” or the “Company“) is pleased to announce that it has entered into a definitive agreement (the “Definitive Agreement”) with Invictus MD Strategies Corp. (TSXV:GENE.V – News) (OTC:IVITF – News) (FRA:8IS1.F – News) for the previously announced non-revolving unsecured convertible loan (the “Loan Facility”) in an amount up to $2,000,000, and an interest rate of 8% (see press release dated August 30, 2018, for more details). The proceeds from the Loan Facility will be used by GTEC for the expansion and development of its cannabis retail strategy in Canada.

See GTEC press release titled “GTEC Holdings Announces Initial Retail Cannabis Stores Scheduled to Be Operational in 2018,” dated October 11, 2018, for a current update on GTEC’s retail operations.

The Definitive Agreement provides Invictus with a Right of First Refusal (“ROFR”) to fill up to thirty percent (30%) of any third-party supply agreement that GTEC, or its subsidiaries, has for the supply of cannabis flower or oil, whether domestic or international, for a period of two years from the date that GTEC, or one of its subsidiaries, receives its first Sales License from Health Canada.

“This week, we as Canadians have made unprecedented worldwide history as we embark into legalization for adult recreational use. We are excited to enter this journey together with Invictus.” said Norton Singhavon, Chairman and CEO of GTEC. “The premium flower, distinct brands and diverse genetics will complement our anticipated 35+ retail locations between British Columbia, Alberta and Saskatchewan.”

“The team at GTEC has successfully executed one of the most robust retail strategies in Western Canada,” said Dan Kriznic, Chairman and CEO of Invictus. “Over the next coming weeks, we look forward to finalizing the supply and launches of our premium adult-use cannabis products.”

The Loan Facility shall be due and payable in full on the date that is two years following the date of the first advance on the Loan Facility (the “Maturity Date”). GTEC will be entitled to prepay all or a part of the Loan Facility at any time, from time to time, without bonus or penalty. Upon mutual agreement by both parties and prior to the Maturity Date, Invictus may increase the amount of the Loan Facility up to $6,000,000 in aggregate, and further extend the term of the Loan Facility.

Upon regulatory approval, all or a portion of the principal and accrued interest on the Loan Facility may be convertible into common shares of GTEC, at the option of Invictus, at any time prior to or on the last business day immediately preceding the Maturity Date, at a conversion price equal to $1.50 per common share (the “Conversion Price”).

About Invictus

Invictus is a global cannabis company offering a selection of products under a wide range of lifestyle brands. Our integrated sales approach is defined by five pillars of distribution including medical, adult-use, international, Licensed Producer to Licensed Producer and retail stores.