GTEC Holdings (GTEC.C) subsidiary gets a sales license, makes product available nationwide

07/26/2019

It’s like clockwork, every damn Friday afternoon. I think I’m getting out early to enjoy the weekend, anticipating the chance to get shittered on negronis, only for Health Canada to drop one of their usual Friday afternoon updates on their list of cannabis licenses.

And, as per usual, it’s GTEC Holdings (GTEC.C) that’s getting another trophy.

Hat tip to @JohnFahmy1 for spotting it because Health Canada doesn’t make it easy.

With the sales license tagged to GTEC subsidiary Alberta Craft Cannabis, other arms of the GTEC family that have a cultivation license but NO sales license, can now sell the product they grow to ACC, which can pass that product on to market legally, right across the country, through provincial sales distributors.

This also means GTEC has no need for further sales licenses at its facilities, other than as a means of simplifying their supply chain, or as an asset that would be flippable down the road.

That gives GTEC a true seed-to-sale path for its products, with an anticipated retail store license or two on the way in Alberta giving it the final mile at a future date.

Either way, GTEC is, as of today, a provincial supplier, a vindicated plan laid out in this news release from July 8:

The Company now has facilities licensed for cultivation in both Eastern and Western Canada. […] The Grey Bruce facility will enable GTEC to fulfill the demand for its cannabis from other Licensed Producers; and subject to Alberta Craft Cannabis (“ACC”) receiving approval of its Federal sales license, introduce GTEC products into Provincial supply chains..

Well, how about that?

I’d like to take a moment right about now to rub this news in the face of certain people who’ve been doing their best to slam and slander GTEC, tossing out repeated ‘what if’s on the topic of whether this license would ever happen, and alleging that the sales strategy they’ve laid out was in some way shady.

This tweet hasn’t aged well:

[contextly_sidebar id=”OaCRa7OY7GqgmvW0MhKBmvS1PfstbiWY”]Yes, that was the plan.

IS the plan.

The plan is that.

And with that, vertical integration, which has been GTEC’s goal from the start, is upon us.

For GTEC, this is a big event, a true coming of age, and a justification for the patience shareholders have had to endure. It also makes them one of the cheaper sales licensees on the public markets, at a $48 million market cap.

For naysayers, it’s yet another case of them getting it wrong.

As an example, this tweet hasn’t aged well.

Turns out it was a matter of ‘when.’

A couple of weeks ago, GTEC acquired a cultivation license for its Grey Bruce Farms facility, up the road from Supreme Cannabis (FIRE.T) in Kincardine, Ontario.

That doubled the number of licenses, what with ACC’s existing cultivation license. When they subsequently announced they’d be taking one of Canopy Growth Corp’s (WEED.T) speculative assets off their hands in BC, naysayers whined that the facility wasn’t licensed yet, and who knows if it ever will be?

This tweet aged well.

After snaring licenses at Invictus MD Strategies (GENE.V) during their time there, the GTEC team now has a handful of new licenses they’ve achieved in the time since, leading them to a success rate that few can match.

Now it’s time to ramp up sales.

…and for me to get my Friday drink.

— Chris Parry

FULL DISCLOSURE: GTEC is an Equity.Guru marketing client. That’s an agreement that’s aged well.

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