GTEC HOLDINGS COMPLETES DRAW DOWN ON $2 M CONVERTIBLE LOAN
Pursuant to the loan agreement with Invictus MD Strategies Corp. dated Oct. 16, 2018, as announced on Oct. 19, 2018, GTEC Holdings Ltd. has completed the drawdown of $2-million of convertible debt, evidenced by way of a convertible grid promissory note. The proceeds from the Convertible Debt will be used by GTEC to further execute GTEC's cannabis retail expansion strategy in Canada.
The terms of the Promissory Note remain unchanged from the terms disclosed in the Company's press releases dated August 30, 2018 and October 19, 2018, and are as follows:
the Convertible Debt shall bear interest computed in the outstanding balance at the rate of 8% per annum, calculated and paid in arrears on the first day of each calendar month;
GTEC shall repay the Convertible Debt on or prior to the date which is 24 months following the date of advance ("Maturity Date");
subject to the approval of the TSX Venture Exchange, Invictus may convert the Convertible Debt into common shares in the capital of GTEC ("Common Shares") at a price of $1.50 per Common Share, at any time prior to the last business day immediately preceding the Maturity Date;
upon mutual agreement of both parties prior to the Maturity Date, Invictus may increase the amount of the convertible loan facility up to $6,000,000.
The Promissory Note and any Common Shares issued upon conversion of the Promissory Note will be subject to a four month hold period from the date of issuance of the Promissory Note in accordance with applicable Canadian securities laws.
The Company announces that 100,000 incentive stock options have been granted to Jeremy Wright, the Chief Financial Officer of the Company. The stock options vest immediately and have an exercise price of $0.86 per share and are exercisable for a period of three years from the grant date. The options are subject to, in all respects, the terms of the Company's stock option plan and the requirements of the TSX Venture Exchange.