GTEC Announces Satisfaction of Tumbleweed Milestone (“GTEC” or the “Company”) announces that further to the press release dated January 30, 2019, in which the GTEC announced that Tumbleweed Farms (“Tumbleweed”) completed construction of a Health Canada approved cannabis production facility (the “Tumbleweed Facility”), the completion of the Tumbleweed Facility has resulted in the satisfaction of a milestone pursuant to the share purchase agreement dated November 22, 2017 among GreenTec Holdings Ltd. (“GreenTec”), Norton Singhavon (“Mr. Singhavon”) and Michael Blady (“Mr. Blady” and together with Mr. Singhavon, the “Vendors”) and the assignment and assumption agreement dated June 11, 2018 between GTEC, GreenTec and the Vendors.
As a result of the foregoing, GTEC is to issue $250,000 worth of common shares of the Company (the “Common Shares”) to Mr. Singhavon, Chairman and Chief Executive Officer of the Company and Mr. Blady, Director and Vice President of the Company, upon completion of construction of the Tumbleweed Facility. Accordingly, GTEC intends to issue an aggregate 367,647 Common Shares to the Vendors at a deemed price of $0.68 per share. Mr. Singhavon will receive 257, 353 Common Shares and Mr. Blady will receive 110,294 Common Shares.
The Common Shares will be subject to a statutory hold period of four months and one day from the date of issuance thereof and the issuances remains subject to the approval of the TSX Venture Exchange.