Sacramento, CA. , July 24, 2018 (GLOBE NEWSWIRE) — Spotlight Growth has published new content on GTEC Holdings, Ltd. (TSXV: GTEC) (OTC PINK: GGTTF). GTEC Holdings, Ltd. is a Kelowna, British Columbia-based, vertically-integrated cannabis company that seeks to bring a premium craft quality approach to the legal marijuana industry.
The report provides an overview of GTEC Holdings, Ltd., its subsidiaries, financials, industry analysis and more. The content also covers the global outlook for the coming Canadian recreational cannabis market.
New Frontier Data: Canadian Cannabis Market Estimated To Reach C$9.2 Billion By 2025
In June 2018, Canada become the first G20 nation to announce plans to legalize recreational cannabis use for adults. Canadian Prime Minister Justin Trudeau said that recreational cannabis will officially be legalized on October 17, 2018. The major announcement effectively prepares the floodgates to be opened on the high-growth cannabis market within the country. Entrepreneurs have been positioning for recreational legalization for quite some time and with just a few months to go, there certainly is a palpable buzz in the air among cannabis companies and consumers alike.
“Canada is about to become the first G20 nation in the world to fully legalize cannabis and the implications are enormous. Combined, the Canadian medical and adult-use markets will rival that of California – which boasts the 6th largest overall economy internationally. Canadian usage rates in the medical market are higher on average than in the U.S. When the adult-use Canadian market opens the combined domestic and international opportunities will increase dramatically and create new momentum around the world,” details New Frontier Data Founder & CEO, Giadha Aguirre de Carcer.
Canada’s decision to legalize recreational cannabis comes as global opinion continues to become more open and interested in cannabis. The cannabis movement is largely reminiscent of the ending of alcohol prohibition within the United States during the early 1930s.
Today, there is a vibrant international alcohol and spirits market that has been a major beneficiary in the numerous decades since the 1933 decision. Cannabis has the opportunity to be the “alcohol” of the modern era.
According to New Frontier Data, the Canadian cannabis market is estimated to be worth C$9.2 billion by 2025. Furthermore, Palisade Research forecasts the legal cannabis market to be worth around US$7.5 billion in sales by 2020.
GTEC: Six Subsidiaries Hold 1 Dealer’s License, 1 Cultivation License, and 4 Late Stage Applications
GTEC Holdings, Ltd. is relatively new to the public domain, as the company just began trading on June 22, 2018. However, the company is backed by some serious industry heavyweights.
Canadian venture capital firm, Doventi Capital, was a major backer of the company’s C$16.24 million seed financing, where they committed C$8 million to GTEC Holdings. Furthermore, GTEC’s management has invested over C$6 million of their own assets into the company, effectively “putting their money where their mouth is,” something that is largely absent from companies at this level.
Management estimates current cannabis production will be around 50,000 kilograms per year by 2020, as GTEC Holdings has over 23 million square feet of expansion capabilities.
GTEC Holdings currently holds 100% interest in six wholly-owned subsidiaries:
· GreenTec Bio-Pharmaceuticals Corp.
· Alberta Craft Cannabis (holds Health Canada cultivation license)
· Zen Labs (awarded Health Canada dealer’s license)
In recent news…
On July 9, 2018, GTEC Holdings, Ltd. announced a relationship with Cannabis Cowboy, a recreational cannabis and accessories retailer based out of Calgary, Alberta. GTEC Holdings will immediately begin to process 24 retail cannabis locations under the Cannabis Cowboy name. In the process, GTEC Holdings will commit up to C$150,000 per retail location. In exchange, GTEC is named the preferred supplier of the retail locations and has right of first refusal on the following:
· Further partnering with Cannabis Cowboy for additional locations
· Ability to participate in future financings
· Purchasing Cannabis Cowboy shares that are up for sale
On July 11, 2018, GTEC signed an exclusive binding letter of intent with F-20 Developments Corp. to construct a 240,000 sq. ft. indoor cannabis cultivation facility in Vernon, British Columbia. F-20 Developments will be funding C$9 million towards the Phase 1 project costs, while GTEC Holdings will spend the final C$1 million for the Phase 1 project. In return, GTEC will issue the equivalent of C$2.5 million in shares.
On July 16, 2018, GTEC made major announcement that its Zen Labs subsidiary has been issued a dealer’s license by Health Canada. This comes just 17 days after Health Canada officials conducted the facility inspection.
As of July 2018, GTEC Holdings, Ltd. maintains a market cap of C$80.60 million and currently trades at a price around C$0.95 per share. The company has total shares outstanding of 85.74 million. Furthermore, has cash holdings of around C$14 million and total liabilities of C$5 million.
GTEC Holdings, Ltd. was also featured on an episode of Spotlight Growth Live, a video web series that focuses on emerging growth companies.
For more information on GTEC Holdings, Ltd., please visit https://www.gtec.co/ and https://spotlightgrowth.com//2018/07/22/gtec-holdings-ltd-tsxv-gtec-otc-pink-ggttf-major-achievements-place-this-undervalued-cannabis-stock-on-track-for-a-big-fall-run/
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