GTEC, Invictus MD cancel LOI to merge GTEC HOLDINGS AND INVICTUS MD STRATEGIES ANNOUNCE FORMAL TERMINATION OF MERGER PLANS AND MAINTAIN EXISTING WORKING RELATIONSHIP
Pursuant to the terms of a non-binding letter of intent entered into with Invictus MD Strategies Inc., as announced on Nov. 16, 2018, the parties have mutually agreed to terminate the LOI and not proceed with the merger.
GTEC and Invictus maintain a strong working relationship based on their previously announced definitive agreement dated August 30, 2018 whereby:
GTEC entered into a $2m convertible loan facility with Invictus, at an interest rate of prime plus 5%. The loan facility is convertible at $1.50 per common share of GTEC and is due on the date that is two years following the date of the first draw. As of the date hereof, GTEC has drawn-down on the facility.
As additional consideration, GTEC has provided Invictus with a right of first refusal to fill up to 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.
"We look forward to continuing down the path of GTEC becoming one of Canada's leading premium focused and vertically integrated cannabis companies, while maintaining a strong working relationship with the Invictus team," said Norton Singhavon, Founder, Chairman & CEO. "2019 will prove to be an instrumental year for GTEC as we continue to execute on our vision and strategy within the premium cannabis market in Canada."
"Invictus is continually aiming to realize its vision of building a cannabis company anchored on its Western Canadian roots, with a focus on satisfying patients' and consumer's needs in the medical and recreational markets, respectively," said George E. Kveton, President and CEO of Invictus. "We look forward to maintaining and further increasing our strong, strategic partnerships with companies like GTEC to support our five pillars of distribution including medical, recreational, international, Licensed Producer to Licensed Producer, and retail."