Kelowna’s GTEC Holdings (GTEC.V) has moved a step closer to opening retail stores in Saskatchewan.
GreenTec Holdings, a subsidiary of GTEC Holdings, entered into an option agreement with BATC Investments establishing a joint venture. The option agreement, signed Nov. 5, 2018, establishes a JV company called GreenTec Retail SK.
Unlike in the majority of Canadian provinces, the Province, through the Saskatchewan Liquor and Gaming Authority (SLGA), has opted to turn cannabis retail over entirely to the private sector
The agreement has just received TSX Venture Exchange approval “to facilitate the acquisition of cannabis genetics.”
Option agreement
As part of the deal, BATC will get 25 Class A common shares in GreenTec Retail while GreenTec Holdings will receive 75 Class A common shares. According the press release, both GreenTec Holdings and BATC will “identify, secure, and develop retail opportunities in the cannabis sector” in Saskatchewan through the JV.
BATC also has the option to require GreenTec Holdings to buy BATC’s interests in GreenTec Retail up until six months after the first store opens in Saskatchewan.
BATC is a privately held company and the investment division of the Battlefords Agency Tribal Chiefs. The agency comprises the First Nations of Ahtahkakoop Cree Nation, Moosomin First Nation, Red Pheasant Cree Nation, Sweetgrass First Nation, Stoney Knoll First Nation, Saulteaux First Nation and Mosquito Grizzly Bear’s Head Lean Man First Nation.
Saskatchewan retail plans
GreenTec Holdings first announced in June 2018, that it was trying to enter the cannabis market in Saskatchewan. The company applied in partnership with BATC to the SLGA for a dispensary license.
We’re proud to have established a foothold in the Saskatchewan retail cannabis market. We anticipate that this development will facilitate both our traditional and on-line retail efforts in the province of Saskatchewan.
— Norton Singhavon, Chairman & CEO of GTEC Holdings
More than 1,500 applications were made for 51 retail permits in Saskatchewan in a two-stage process. The agreement with BATC does not say when any of those retail stores will open.
After Saskatchewan, GTEC also said it is trying to enter the market in Manitoba, another province which permits private retail.
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.
GTEC is also plans to increase production in 2019.
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.
Here is rundown of some of GTEC’s plans for 2019:
Read: GTEC Holdings (GTEC.V) grows as Invictus merger discussions continue
Tumbleweed Farms
GTEC Holdings also announced it has received approval from the TSX Venture Exchange for a deal between its wholly-owned subsidiary Tumbleweed Farms and a numbered cannabis consulting company (1183279 B.C. Ltd.). The Okanagan-based consulting company will receive 200,000 shares for consulting services on cannabis genetics. The full details for the agreement were previously announced Nov. 16.
Superior genetics are the cornerstone of premium quality cannabis. This [Tumbleweed Farms] agreement represents a key element of our plan to become Canada’s leading vertically integrated craft cannabis company.
— Norton Singhavon, Chairman & CEO of GTEC Holdings
–M.J. Jordan
Full Disclosure: GTEC Holdings is an Equity.Guru marketing client.