GTEC Holdings Ltd. (TSX-V: GTEC) is pleased to provide the following update on the operations of its retail subsidiaries.
Upon commencement of the Company's TSX Venture listing, the Alberta Gaming and Liquor Commission ("AGLC") immediately processed 24 retail cannabis storefront applications under the name Cannabis Cowboy.
On March 6, 2018, GreenTec Holdings Ltd. ("GreenTec"), a wholly owned subsidiary of GTEC, subscribed for 25% of the issued and outstanding Common Shares of Cannabis Cowboy Inc. ("Cannabis Cowboy"). Concurrently with the subscription for shares, GreenTec entered into a unanimous shareholders' agreement Cannabis Cowboy and its other shareholders, which was amended and restated pursuant to an Amended and Restated Shareholders' Agreement dated March 20, 2018 and a Second Amended and Restated Shareholders' Agreement dated March 26, 2018 among the parties (the "Cannabis Cowboy Shareholders' Agreement").
Cannabis Cowboy is a Calgary-based medical marijuana counselling organization which provides safe and reasonable clinic access to medical patients who qualify under Health Canada's ACMPR. Cannabis Cowboy has now completed the development of their adult recreational use brand and strategy. Subject to receiving the requisite licenses to operate cannabis retail stores, it intends to convert its existing medical consulting clinics to cannabis retail stores and has further secured additional retail locations in Alberta, each of which comply with its respective municipal zoning by-laws for the operation of cannabis retail stores. Cannabis Cowboy will own and operate each such cannabis retail store through one or more wholly owned subsidiaries.
Pursuant to the Cannabis Cowboy Shareholders' Agreement, GreenTec has committed up to $150,000 per retail storefront, be the preferred supplier, and hold a right of first refusal on the following:
- Partnering with Cannabis Cowboy on any future locations within Canada
- Participating in whole, any future financings
- Purchasing any shares of Cannabis Cowboy that are offered up for sale
GreenTec's wholly owned subsidiary, Alberta Craft Cannabis ("ACC") is working diligently to complete the final step in Health Canada's ACMPR licensing progress, obtaining a Sales License. Upon receiving a Sales License from Health Canada, ACC intends to pursue a supply agreement with the AGLC.
As previously announced on June 4th, 2018. GTEC's application into the Saskatchewan Liquor and Gaming Authority (SLGA) lottery process was selected to apply for a cannabis retail permit. GTEC has identified two locations, one to serve as a retail storefront and one to operate the online ecommerce segment of the License. GTEC has engaged Cannabis Compliance Inc to submit a final application to the SLGA.
British Columbia Retail
The British Columbia Liquor & Cannabis Regulation Branch earlier this week released the application process for cannabis retail storefront locations. GTEC has already secured 2 retail locations that comply with their respective municipal zoning by-laws, with the intention of applying for over 20 locations within BC.
About Cannabis Cowboy
"Cannabis Cowboy" is to be a privately owned recreational cannabis and accessories retailer based in Calgary, Alberta, Canada. Upon the pending approval from the Canadian Federal Government to legalize cannabis for recreational use, Cannabis Cowboy will begin offering retail dispensary services to Western Canada. To meet the rapidly growing demand for cannabis products and services, Cannabis Cowboy has developed an ambitious growth strategy to develop up to 30 turnkey retail locations within the next four months anticipating the legalization of recreational cannabis on October 17, 2018.
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