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GTEC Holdings Signs Binding Letter Of Intent For 240,000 Sq. Ft. Expansion Site In BC
GTEC Holdings Signs Binding Letter Of Intent For 240,000 Sq. Ft. Expansion Site In BC ...
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[{"type":"text","content":"\n\n\n\nGTEC Holdings Signs Binding Letter Of Intent For 240,000 Sq. Ft. Expansion Site In BC\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nKELOWNA, BC, July 11, 2018\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES./\n\n\n\nKELOWNA, BC, July 11, 2018 /CNW/ - GTEC Holdings Ltd. (TSXV: GTEC) (\"GTEC\" or the \"Company\") is pleased to announce that on June 10th, 2018 it entered into an exclusive binding letter of intent (\"LOI\") with F-20 Developments Corp. (\"F-20\") to develop a 240,000 sq. ft. indoor cultivation facility located in Vernon, British Columbia.\n\n\n \n \n\n \nF-20, a privately held corporation whose principals have been involved in the financing and construction of licensed cultivation facilities in Canada and the U.S, has secured a property (the \"Property\") with an existing 60,000 sq. ft. building that will be retrofitted as part of the first phase of construction to allow for the cultivation of cannabis (\"Phase 1\"). A second phase of the project will see the construction of a secondary purpose-built building to be 180,000 sq ft. in size. Phase 1 construction is expected to commence immediately upon the parties finalizing the definitive and ancillary agreements, and upon GTEC and F-20 incorporating a new company (\"NewCo\").\n\nF-20 has committed to fund the large majority of the Phase 1 project costs up to $9,000,000, with GTEC committing to fund the final $1 million towards the estimated $10 million budget to complete Phase 1. As consideration for F-20 entering into this arrangement, upon execution of the definitive agreements, GTEC shall issue to F-20 common shares (the \"Consideration Shares\") equivalent to $2.5M at a deemed price equal to the 10-day volume-weighted average trading price of such shares, where the Consideration Shares are subject to performance milestones related to the construction of Phase 1. GTEC will have an option to acquire all of F-20's issued and ou...