GTEC” or the “Company”) is pleased to announce that it has completed the previously announced acquisition (the “Acquisition”) of 1203648 B.C. Ltd. (“RetailCo”) for an aggregate purchase price of $2,113,000 (the “Purchase Price”). RetailCo is in the process of obtaining municipal and provincial approvals (collectively, the “Approvals”) to operate a non-medical cannabis retail location. RetailCo will operate under GreenTec Retail Ventures Inc.’s storefront name, “Cake Cannabis Co.” and will serve as GTEC’s flagship store in Western Canada.
Pursuant to the Acquisition, the Company will gain access to over 4,000 square feet of retail space located in an affluent and diverse neighbourhood in Vancouver, BC. The retail space has a high-end interior design and includes displays, shelving and storage.
The Purchase Price was comprised of (i) $47,705.75 cash paid to the shareholders of RetailCo (the “Vendors”), (ii) cancellation of debt in the amount of $2,294.25 owed by the Vendors to GTEC and (3) the issuance of $2,063,000 worth of common shares in the capital of GTEC (“Common Shares”). Accordingly, the Company issued 3,438,333 Common Shares to the Vendors at a deemed value of $0.60 per share.
The Common Shares issued in connection with the Acquisition are subject to a statutory hold period of four months and one day from the date of issuance thereof. 1,719,167 Common Shares issued are also subject to a contractual escrow period (the “Escrowed Shares”) until RetailCo successfully obtains all necessary Approvals for the retail sale of non-medical cannabis. In the event RetailCo does not obtain all necessary Approvals by April 26, 2020, the Escrowed Shares will be returned to GTEC treasury for cancellation.
Termination of AssetCo LOI
Further to previous announcements on November 7, 2018 and March 22, 2019, GTEC has exercised its right of termination under the binding letter agreement (the “Letter Agreement”) with a private British Columbia corporation (“AssetCo”) to acquire 2 other retail locations in Vancouver.