GTEC Holdings Ltd.
The green light from Health Canada will allow the firm to produce 1,650 kg of cannabis there on an annualized basis. GTEC also runs a facility called Tumbleweed Farms in British Columbia, and the licensing of Grey Bruce takes its total production capacity to 3,000 kg.
It is also edging closer to gaining a sales and manufacturing license at its Alberta Craft Cannabis facility after completing a Health Canada inspection there. When production sites are on stream in the latter half of 2019, GTEC expects its total annual capacity to increase to 14,000 kg.
Grey Bruce has immediately begun cultivating live plants from GTEC’s broad portfolio of exotic and rare cultivars, which have been through a “meticulous and comprehensive pheno selection process”.
GTEC is producing cannabis at a cost of $1.11 per gram and wholesaling it at $5.86 per gram, leaving an estimated gross margin of 81% on products sold, excluding depreciation and amortization. It has reported an increased demand for its cannabis, and the Grey Bruce license will allow it to fulfil orders.
“We anticipate this license will increase our companywide flower output by over 120%, said GTEC founder, chairman and chief executive Norton Singhavon. “We look forward to producing and distributing our new portfolio of products to the Canadian market this fall.”
GTEC has engaged ROK Consulting to assist with efforts to secure a standard cultivation license for Alberta Craft Cannabis in Edmonton. It is giving the firm 100,000 common shares at a deemed value of $0.55, subject to Exchange approval.
GTEC Holdings was founded in Kelowna, British Columbia, in 2017. Its aim is to cultivate, distribute and market premium indoor cannabis across Canada. Last month it bolstered its board with the addition of Jurgen Schreiber, the former chief executive of Shoppers Drug Mart and former chairman of Aldo.
GTEC is an investor awareness client of Capital 10x.
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