According to executives, production is set to rise markedly in 2019 for GTEC Holdings (GTEC.V), and investors appear to be climbing on board.

Chairman and CEO Norton Singhavon says cannabis production for Kelowna’s GTEC will top 13,000 kgs across B.C., Alberta, Saskatchewan, and Ontario in 2019, with the company’s retail footprint to increase to more than 30 locations across Western Canada.

In a letter to shareholders Dec. 21, Singhavon added Manitoba locations could be opened later if GTEC wins the Manitoba government’s lottery process for awarding business licenses in the retail cannabis space.

According to the company, Edmonton’s Alberta Craft Cannabis will produce about 1,500 kgs next year, and both Tumbleweed Farms, in Chase, B.C., and Grey Bruce Farms, in Ontario will produce about 2,500 kgs. In Kelowna, both GreenTec Bio-Pharmaceuticals (2,250 kgs) and 3PL Ventures (7,000 kgs) will push the production total above 13,000 kgs for 2019.

Four of those facilities will first need to be completed in 2019: Grey Bruce and Tumbleweed, ‘sometime’ in 2019; GreenTec Bio-Pharmaceuticals in Q2, and 3PL in Q3.

GTEC’s Tumbleweed Farms facility is under construction in Chase, B.C. Courtesy GTEC Holdings.

GTEC stock has been an outperformer over the last ten days, as competitors have struggled through tough market conditions and tax loss selling. GTEC, which has joined those companies with a stock slide from $1.35 on October 1 to $0.45 a week ago, is now trading at $0.52, good for a value-laden $47m market cap, as merger talks with Invictus continue.

In his letter to investors, Singhavon also sought to reassure shareholders after the cannabis sector, and the markets overall, severely tumbled to end 2018.

The cannabis sector has shown signs of volatility in the public markets, and we would like to instill confidence in those of you who are supporting our vision. As a private company, we set out a mandate to all of you that we would achieve vertical integration within the premium segment of the market. Since going public, our team has continued to execute this vision.

GreenTec Bio-Pharmaceuticals Corp. Courtesy GTEC Holdings.

Singhavon said GTEC is hard at work creating a solid revenue stream from their Alberta Craft Cannabis (ACC) company and working to finish construction at their facilities, a milestone that would help respond to investor unease. 

Regarding the recent merger announcement with Invictus, the company has requested patience while the details are worked out.

As you can respect and understand, we are not permitted to disclose any details to individuals that are not already widely disseminated. Rest assured that both companies are currently progressing with obtaining board approval and due diligence, and we will have some further solidified details in the coming weeks, with a target close sometime in Q1 2019.
There will be a comprehensive information package, as well as a detailed circular highlighting and informing you of the full transaction details. We remain confident that this merger is in the best interest of the company and shareholders.

GTEC Holdings owns a 25 percent stake in marijuana retailer Cannabis Cowboy. Image via

The most significant message in his letter to shareholders was also the most subtle. Tucked away in the second-last para, Singhavon expressed his humble vision for GTEC’s future.

We seek to establish ourselves as the leader of premium craft cannabis products. We believe the current volatile market conditions are not indicative of the company’s execution and vision. We remain confident that if we continue our relentless dedication to execute on building the company, generate earnings and operate in a disciplined an appropriately governed manner, we will eventually deliver long-term value to our shareholders.

— M.J. Jordan

Full Disclosure: GTEC Holdings is an Equity Guru marketing client.

Written By:

M.J. Jordan

More By This Author
Health Science
Greentec Holdings
growth stock
GTEC Holdings
medical cannabis
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x