RE:HC grants Cultivation, Processing & Medical Sales Licenses.. HEALTH CANADA GRANTS CULTIVATION, PROCESSING & MEDICAL SALES LICENCES TO GTEC SUBSIDIARY TUMBLEWEED FARMS
GTEC Holdings Ltd.'s wholly owned subsidiary, Tumbleweed Farms Inc., was granted standard cultivation, standard processing and medical sales licences, pursuant to the Cannabis Act and Regulations by Health Canada on Aug. 16, 2019.
With the licensing of Tumbleweed, management expects the following forecasts across the organization's three operational cultivation facilities:
Estimated Annual production of 4,000 kg of flower and 1,000 kg trim
GTEC to achieve positive cash flow in the near future, upon Tumbleweed and Grey Bruce entering into full production and sales
GTEC is currently implementing its new cultivars into Alberta Craft Cannabis ("ACC") and will transition its sales efforts from B2B wholesale, to Provincial & Territorial adult-use supply chains and direct to medical patients, with the expectation that its average selling price will increase. The Company anticipates the completion of two more facilities (GreenTec Bio-Pharma and 3PL) in the near future, which is expected to increase the organization's production output in 2020.
Within the most recent six weeks, the Company has successfully executed on accomplishing all three of its cannabis licensing objectives for 2019, which include the following:
Standard Cultivation Licence at Grey Bruce Farms - July 5, 2019
Standard Processing and Medical Sales Licence at Alberta Craft Cannabis - July 26, 2019
Standard Cultivation, Processing and Medical Sales Licence at Tumbleweed Farms - August 16, 2019
"We are incredibly proud of the dedication and commitment of our subsidiaries in accomplishing the most recently issued licences," said Norton Singhavon, GTEC Founder Chairman and CEO. "As the organization progresses in the direction of profitability, we will persevere to ensure that Tumbleweed and Grey Bruce become cash flow positive in the near future, while striving to complete the build-outs of GreenTec Bio-Pharma and 3PL."
In accordance with the Cannabis Act and Regulations, Tumbleweed has immediately commenced cultivation of cannabis plants from a portfolio of high-end cultivars (more commonly known as genetics). Management believes that its combination of unique genetics and experienced cultivation techniques will create a long-term sustainable competitive advantage for the Company and provide resistance to overall price compression.
Tumbleweed is a purpose-built cultivation facility located in Chase, British Columbia. This facility was designed, constructed and equipped in a manner intended to optimize its ability to produce the highest quality cannabis flower. The initial phase of the facility is 10,000 sq. ft. and is projected to produce 1,000 kg of cannabis flower annually, with significant expansion capabilities.