Business
GTEC Signs LOI with Invictus MD To Receive Strategic Investment And Expand National Distribution
GTEC Signs LOI with Invictus MD To Receive Strategic Investment And Expand National Distri...
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[{"type":"text","content":"\n\n\n\nGTEC Signs LOI with Invictus MD To Receive Strategic Investment And Expand National Distribution\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, Aug. 30, 2018\n\n\n\nKELOWNA, BC, Aug. 30, 2018 /CNW/ - GTEC Holdings Ltd. (\"GTEC\" or the \"Company\") (TSXV: GTEC) (OTCPK: GGTTF) is pleased to announce that it has entered into a binding Letter of Intent with Invictus MD Strategies Corp. (\"Invictus\") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS1) to provide GTEC with a non-revolving unsecured convertible loan (the \"Loan Facility\") in an amount up to $2,000,000, and an interest rate of prime plus 5%. Subject to regulatory approvals, 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, as defined below, at a conversion price equal to $1.50 per common share (the \"Conversion Price\"). Upon mutual agreement of both parties prior to the Maturity Date, Invictus may increase the amount of the Loan Facility up to $6,000,000.\n\n\n \n \n\n \nThe proceeds from the Loan Facility will be used by GTEC for working capital and to further execute GTEC's cannabis retail expansion strategy in Western Canada and Ontario. GTEC expects to have a minimum of 15 Cannabis Cowboy retail stores open by October 17, 2018, in Alberta, as well as 1 location in Saskatchewan, complemented by an e-commerce platform that will serve the entire Province. \n\nThe definitive agreement (the \"Definitive Agreement\") will also provide Invictus with a right of first refusal to fill up to thirty percent (30%) of any cannabis purchase order domestically and internationally (whether for flower or oil) that GTEC, or its wholly-owned subsidiaries, are seeking to purchase from third party Licensed Producers for a period of two years. The Invictus products will be sold under one of four recreational brands: Dukes, Zooey, Sterling & Hunt, and Sinister, each designed to target a specific audience and hi...