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Summary Report: Understanding The Opportunity In GTEC Holdings, Ltd. (TSXV: GTEC) (OTC: GGTTF)

|Includes: GTEC Holdings Ltd (GGTTF)

Summary

GTEC is a BC, Canada-based vertically-integrated cannabis company. Primary focus is on the premium, craft cannabis market.

GTEC currently has 6 wholly owned subsidiaries, which hold: 1 licensed dealer, 1 Health Canada cultivation license, and 4 late stage cultivation applicants.

Canada officially legalizes recreational cannabis on October 17, 2018. This presents a major opportunity for cannabis companies.

In June 2018, Canada made history by becoming the first G20 nation to announce a timeline to legalize recreational cannabis. Canadian Prime Minister Justin Trudeau announced that recreational cannabis will officially become legalized on October 17, 2018. The slight delay came at the request of certain provinces and territories that requested to have further time to develop its implementation plans. Make no mistake, the legalization announcement is about to exponentially expand the Canadian cannabis market.

According to New Frontier Data, the Canadian cannabis market is estimated to reach C$9.2 billion by 2025. Palisade Research sees the legal cannabis market hitting US$7.5 billion in sales by 2020.

“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.

As the global opinion towards cannabis continues to shift to a more open-minded focus, marijuana companies eye a massive opportunity that is reminiscent of the ending of alcohol prohibition within the United States in 1933.

Today there is a vibrant international alcohol and spirits market that has benefitted immensely throughout the decades. However, after decades of access and deep saturation, the alcohol market is largely a mature market that is not expected to see massive growth over the near-term.

Cannabis has the opportunity to be the “alcohol” of the modern era. Imagine being able to go back in time to right before the ending of Prohibition. Where would you be allocating your capital?

As the cannabis movement continues to take hold, GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) is one undervalued Canadian marijuana company that brings a unique craft twist to the emerging industry.

Overview: GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF)

GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) is a vertically-integrated cannabis company that seeks to bring a premium craft quality approach to the legal marijuana industry. The Kelowna, British Columbia-based company was founded in 2017 and currently holds 100% ownership interests in six subsidiaries:

  • GreenTec Bio-Pharmaceuticals Corp.
  • Alberta Craft Cannabis, Inc.
  • Grey Bruce Farms, Inc.
  • Falcon Ridge Naturals, Ltd.
  • Tumbleweed Farms Corp
  • Zenalytic Laboratories, Ltd. (Zen Labs)

Across its six subsidiaries, the company holds 1 cultivation license, 4 late stage cultivation applicants, and 1 dealer’s license. GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) just announced that its Zen Labs subsidiary had been awarded the highly-coveted dealer’s license from Health Canada on July 16th.

GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) may have just gone public on June 22, 2018, but the company is backed by some industry heavyweights.

Canadian venture capital firm, Doventi Capital, was a major backer of the company during their C$16.24 million seed financing. Doventi Capital invested C$8 million into GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF). Furthermore, management has invested over C$6 million of their own capital 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, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) has over 23 million square feet of expansion capabilities.

Subsidiaries

GreenTec Bio-Pharmaceuticals Corp.

GreenTec Bio-Pharmaceuticals Corp. serves as GTEC Holdings, Ltd.’s (TSXV: GTEC) (OTC Pink: GGTTF) flagship asset. The subsidiary operates as a bio-pharmaceutical research and development company that seeks to deliver “clean, quality medicine in an environmentally sustainable manner to Canadian patients.”

GreenTec Bio-Pharmaceuticals Corp. is currently constructing an 80,000 sq. ft. facility that is currently in the application process to be a licensed producer under Health Canada’s ACMPR rules and regulations. Once constructed, the facility will provide patients with up to 10,000 kilograms of cannabis annually.

The subsidiary also has expansion opportunities for a second location on a 160-acre lot in North Okanagan. Also, in consideration is a third site, which would be on 35 acres located on the Trans Canada Highway in Revelstoke, BC.

Alberta Craft Cannabis, Inc.

Alberta Craft Cannabis, Inc. focuses on the cultivation of small batch, craft quality cannabis. The Edmonton-based craft cannabis company holds an active cultivation license with Health Canada, which was received in September 2017.

The high-quality cannabis producer has a 14,000 sq. ft. facility that is capable of producing annual output of 1.3 million grams of craft marijuana. The company received its initial batch of genetics in April 2018 and “immediately commenced cultivation.”

GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) is interested in beginning the application process with Health Canada for a second location under the Alberta Craft Cannabis name.

Falcon Ridge Farms

Falcon Ridge Naturals, Ltd. (also known as Falcon Ridge Farms) is an eclectic farm located in Kelowna, British Columbia. The company also offers other certified organic products such as honey, jam/jelly, syrups, condiments, spices, and more. Falcon Ridge Farms focuses on producing certified organic Echinacea Angustifolia and echinacea products. The company holds three natural health product (NHP) licenses from Health Canada.

GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) is currently preparing to construct a 10,000 sq. ft. cannabis production facility at Falcon Ridge, which will have the capability to produce 1 million grams of organic cannabis annually.

Grey Bruce Farms

Grey Bruce Farms focuses on producing high-quality and diverse medical cannabis strains. The boutique cannabis producer is currently in the process of constructing a 15,000 sq. ft. craft cannabis facility in Grey Bruce County, Ontario. Grey Bruce Farms has already submitted an application to be a licensed producer to cultivate medical cannabis with Health Canada.

Grey Bruce Farms’ focus is as an organic family farming company, which utilizes horticulture and organic methodologies to produce high-quality medical cannabis.

Tumbleweed Farms

“Tumbleweed Farms, a wholly owned subsidiary of GTEC Holdings is currently in construction of its 10,000 square foot boutique craft cannabis ACMPR production facility located in Chase, BC on 22 acres. Tumbleweed Farms will utilize natural resources British Columbia has to offer, such as an abundance of clean and pure water within the property, as well as growing mediums & fertilizers that are locally produced. Tumbleweed Farms is also located within 8kms of the Trans Canada Highway, which will offer simplicity of logistics to ship product into the Lower Mainland, Northern BC, or into the province of Alberta.”

Zen Labs

Zen Labs is a full-service chemical and microbiological diagnostics lab and testing company for soil, water, and cannabis. The testing facility is able to test for contaminants, metals, microbiology, pesticides, and other factors.

The Kelowna, British Columbia company just recently made big news that it has officially been issued a dealer’s license from Health Canada. Zen Labs plans to apply for amendments to its dealer’s license, which will allow for extraction, refining, exporting, and other capabilities.

Market Cap/Financials

As of July 2018, GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) 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, GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF) has cash holdings of around C$14 million and total liabilities of C$5 million.

GTEC Holdings, Ltd. was also recently featured on an episode of Spotlight Growth Live, check it out here.

To View The Full Summary Report on GTEC Holdings, please visit: GTEC Holdings, Ltd. (TSXV: GTEC) (OTC Pink: GGTTF): Major Achievements Place This Undervalued Cannabis Stock On Track For A Big Fall Run - Spotlight Growth

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