This Presentation supersedes and replaces all prior versions that may have been received and is the only version that should be relied upon.
CORPORATE PRESENTATION This Presentation supersedes and replaces - - PowerPoint PPT Presentation
CORPORATE PRESENTATION This Presentation supersedes and replaces - - PowerPoint PPT Presentation
CORPORATE PRESENTATION This Presentation supersedes and replaces all prior versions that may have been received and is the only version that should be relied upon. GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 1
CAUTIONARY NOTE
This presentation of GTEC Holdings Ltd. (“GTEC” or the “Company”) is for information only and shall not constitute an offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The information contained herein is subject to change without notice and is based on publicly available information, internally developed data and other sources. Where any opinion or belief is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion or belief only. This presentation should not be construed as legal, financial or tax advice to any individual, as each individual’s circumstances are different. Readers should consult with their own professional advisors regarding their particular circumstances. This presentation includes forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate” or, in each case, their negative and words of similar meaning are intended to identify forward-looking information. Forward-looking information involves risks and uncertainties including, but not limited to, the Company’s anticipated business strategies, anticipated trends in the Company’s business and anticipated market share, the Company’s proposals to secure the land on which it will operate and expand the facilities in which it will cultivate, expected facility capacity, legalization in the cannabis industry, factors that could cause actual results or events to differ materially from those expressed or implied by the forward-looking information, general business, economic and competitive uncertainties, regulatory risks including risks related to the granting and expected timing of the approval of Company’s ACMPR license, risks associated with acquisitions and expansion, risks inherent in manufacturing operations, other general risks of the cannabis industry as well as those risk factors disclosed elsewhere below. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties, contingencies and other factors. Many assumptions are based on factors and events that are not within the control of the Company. Actual future results may differ materially from historical results or current expectations. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results
- r developments may not be indicative of results or developments in subsequent periods.
Although the Company has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this presentation is based on the Company’s current estimates, expectations and projections, which the Company believes are reasonable as of the current date. The Company can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking information, which is based on the information available as of the date of this presentation. Forward-looking information contained in this presentation is as of the date of this presentation and, except as require by applicable law, the Company assumes no
- bligation to update or revise them to reflect new events or circumstances.
Historical statements should not be taken as a representation that such trends will be replicated in the future. No statement in this presentation is intended to be nor may be construed as a profit forecast. To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any
- ther purpose and the reader should not place undue reliance on such future-oriented financial
information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading “Cautionary Note Regarding Forward Looking Statements. The Company’s actual financial position and results of operations may differ materially from management’s current expectations and, as a result, the Company’s revenue and expenses may differ materially from the revenue and expenses profiles provided in this
- presentation. Such information is presented for illustrative purposes only and may not be an
indication of the Company’s actual financial position or results of operations.
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 2EXECUTIVE SUMMARY
GTEC Holdings is a Kelowna-based company dedicated to cultivating premium quality cannabis in purpose-built indoor facilities. We are vertically integrated across all major sectors of the Canadian cannabis industry and hold Cultivation, Extraction and Analytical Testing licenses. Our retail division is working on licensing for over 35 recreational cannabis stores across Western Canada. The Company is actively pursuing sales and distribution
- pportunities across all major business channels:
Recreational, Medical, Inter-Company (B2B) and Export.
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 3DIRECTORS, MANAGEMENT & EMPLOYEES HAVE INVESTED
N1
Over $11 million, or 29% of the $38 million in equity capital raises to date 37% in the most recent $12.5 million financing Estimated at 30% Ownership
Roughly
33%
- f issued and
- utstanding
shares escrowed and released
- ver
36
MONTHS from commencement
- f trading
CURRENT VALUATION
N2 – Forecast based on GTEC’s average B2B wholesale selling price of flower and does not include any revenue from retail, testing or extraction N1 – Figures are based on the issued and outstanding shares#1 Selling Product on CannMart
(from initial test harvests)
6.4x
- f Estimated
2019 Revenue
N2
1.3x
- f Estimated
2020 Revenue
N2
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 4THE GTEC DIFFERENCE
Following the October 17, 2018 legalization of recreational cannabis in Canada, the legal (aka ‘white’) market has suffered from supply shortages and inferior quality products. It has become abundantly clear that the majority of Canadian Licensed Producers are struggling to meet their production projections, and are not yet capable of producing high quality cannabis. This scenario strongly supports GTEC’s commitment to producing premium quality craft cannabis, based on these fundamentals: HIGHLY EXPERIENCED CULTIVATION TEAM
With a track record of producing consistently
- utstanding cannabis flower.
SUPERIOR GENETICS
26 different cultivars; including numerous unique exotic strains.
INDOOR GROWING FACILITIES
To ensure full control over the growing environment.
SMALL BATCH PRODUCTION
A focus on quality
- ver quantity.
ADAPTIVE FERTIGATION PROGRAMS
To maximize yield and quality.
DYNAMIC ENVIRONMENTAL MANAGEMENT
To ensure full control over temperature; humidity; CO2 levels.
CAREFUL HANG-DRYING & CURING
To optimize moisture, cannabinoid, and terpene profiles.
METICULOUS HAND TRIMMING
Fully removing lower value components (leaf, stem, stalk, etc.)
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 5OUR PREMIUM CANNABIS
The Unique Characteristics of GTEC’s Premium Quality Cannabis: Large, dense & aesthetically appealing flower Optimal moisture levels Absence of stem, seed, leaf or fragmented flower Highly visible and abundant trichome crystals Complex & pungent terpene aromas Diverse spectrum of intense colours High levels of key cannabinoids Smooth and clean burning
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 6GROWING FACILITIES
LOCATION TOTAL SIZE (SQ FT.) PRODUCTION OUTPUT (G) CONSTRUCTION LICENSE POTENTIAL EXPANSIONAlberta Craft Cannabis Edmonton, AB 14,000 1.3 Million Complete Licensed Producer N/A Grey Bruce Farms Kincardine, ON 15,000 1.64 Million Q2 2019 Late Stage 500,000 sq ft Tumbleweed Farms Chase, BC 10,000 1 Million Q2 2019 Late Stage 100,000 sq ft GreenTec Bio Pharmaceuticals Kelowna, BC 20,000 2.15 Million Q3 2019 Late Stage 60,000 sq ft F-20 (JV) Vernon, BC 60,000 8 Million Q3 2019 Late Stage 180,000 sq ft
farms
g r e y b r u c e
P R E M I U M I N D O O R G R O W N A R T I S A N A L S M A L L B A T C HA L B E R T A
C R A F T C A N N A B I SG R E E N T E C
) )
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 7LAB & EXTRACTION FACILITIES EXPANSION LAND
NORTH OKANAGAN
6.9 Million sq ft. of land with available water and power, leased with a ROFR to acquire.
COLUMBIA SHUSHWAP
1.5 Million sq ft. of land along the Trans Canada Highway, with potential for retail and agritourism.
LOCATION TOTAL SIZE (SQ FT.) PRODUCTION OUTPUT (G) CONSTRUCTION LICENSE POTENTIAL EXPANSIONZenalytic Labs Kelowna, BC 1,250 TBD (Oil) Complete Licensed Dealer N/A Spectre Labs Kelowna, BC 5,000 8.5 Million (Oil) TBD In Progress N/A
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 8OUR PREMIUM BRANDS
blk mkt
A nod to the origins of cannabis. This brand will target the more experienced consumer via high THC cannabis strains.
tenzo
A balanced lifestyle brand, with a variety of strains that provide a diverse palette of desired effects to consumers.
greentec
Our flagship brand catering to the Medical Market, and designed specifically to help aid patients with pain relief and ailments.
H I G H T H C C A N N A B I S Z E N C A N N A B I S M E D I C A L C A N N A B I S GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 9OUR PREMIUM BRANDS
cognoscente
For the sophisticated consumer who appreciates high quality genetics, craft growing and optimized drying, curing and trimming.
C O N N O I S S E U R ’ S C A N N A B I Sfn (first nations)
The FN (First Nations) brand would be a niche product, used in partnership with a First Nations group, created to celebrate and show respect to the first Canadians.
F I R S T N A T I O N S C A N N A B I Streehugger
A premium quality line of organic cannabis products. An earthy and approachable brand for cannabis consumers seeking a clean and environmentally friendly product.
O R G A N I C C A N N A B I S GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 10OUR PREMIUM PACKAGING
GTEC packaging is designed to deliver tangible consumer benefits:
Exceptional Cannabis + Premium Packaging & Branding deliver superior gross margins
* CONCEPT ARTWORKProtects product quality (no leaching of hydrocarbons) Maintains terpene aromatics Extends product shelf life Environmentally friendly (reusable & recyclable) Consumer-preferred sizes Certified Child Resistant
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 11RETAIL STRATEGY
GTEC has a minority (25%) stake in Cannabis Cowboy, a company with plans to develop up to 30 turnkey retail locations within the next four months in Alberta.
Our vertical integration strategy allows us to achieve greater control over our supply chain.
In Saskatchewan, GTEC has a majority (75%) stake in a retail initiative that includes an exclusive store in Nipawin and an e-commerce fulfillment centre in Saskatoon. GTEC has already secured a retail location that complies with respective municipal zoning by-laws, with the intention of applying for 8 locations within BC.
* actual store locations may vary GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 12OUR MILESTONES
July 2017
Acquired land to build GreenTec Bio-Pharmaceuticals 80,000 square foot facility
September 2017
Acquired 100% of Grey Bruce Farms (formerly OrganaGreen Cannabis Company)
November 2018
Alberta Craft Cannabis received updated License from Health Canada permitting B2B cannabis sales
March 2019
Raised $12.5 Million via Private Placement
August 2017
Acquired 100% of Tumbleweed Farms
February 2018
Acquired 100% of Alberta Craft Cannabis (formerly GrenEx Farms)
June 2018
Completed listing on the TSX:V Raised $30 Million Privately Awarded Retail Dispensary License Rights in Saskatchewan
July 2018
Entered into an exclusive LOI with F-20 Developments Corp. to develop a 240,000 sq. ft. indoor cultivation facility in Vernon, British Columbia Zen Labs received Dealer’s License from Health Canada
August 2018
Completed Supply Agreement with Namaste Technologies & Cannmart
September 2018
Zen Labs Received Health Canada Approval to Expand Scope of Dealer’s License to Include Extraction of Cannabis Oil
December 2018
Completed Initial Sale and Shipment of Cannabis to CannMart
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GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 13EXECUTIVE TEAM
NORTON SINGHAVON
Founder, Chairman and CEO
Norton has had extensive experience at the senior management level of capital investments and has been involved in several large acquisitions, consolidations, and start-ups in the North American legal cannabis sector, both private and public. As an investor and advisor to numerous companies in Canada’s cannabis sector, he has been responsible for internally deploying over $100 million into the legal cannabis sector and has been involved in numerous public M&A cannabis transactions. Norton was previously an advisor to, and early-stage investor in, Invictus MD (TSX.V:IMH) and also an Operations Consultant for Cronos Group (TSE:CRON). As an experienced corporate leader, he has facilitated in regulatory matters, corporate matters, raising capital privately and publicly, as well as strategic corporate development within the public markets.
MICHAEL BLADY
Co-Founder and Vice President
Michael formerly served as a Director of Invictus. As a venture capitalist, he has been involved since 2009 in the start-up and senior management of numerous public companies as well as performing the role of Consultant and Advisor. In his recent role as Director and Senior Executive of Invictus, Michael helped oversee the acquisition, management and growth of a diverse portfolio of cannabis-centric businesses owned by
- Invictus. Michael has been directly involved in raising
more than $65 million of capital in the cannabis sector.
DAVID LYNN
Chief Operating Officer
David formerly served as the President & CEO of Sun-Rype
- Products. During his tenure at Sun-Rype, David achieved
record net sales and EBITDA while taking Sun-Rype from a $13 million EBITDA loss to a $15 million EBITDA profit in his first year. Previous to Sun-Rype, David served as the Senior VP of Marketing at Saputo Canada, where he oversaw the consumer marketing strategy for the largest division of the
- company. His lengthy tenure with publicly traded companies
- n the TSX will be immensely beneficial in guiding GTEC’s
future growth.
JEREMY WRIGHT
Chief Financial Officer
Jeremy currently serves as the President & CEO of Seatrend Strategy Group. He has significant experience serving as a Director of Demetra Minerals, and Good Ventures, and previously served as a Director with Pacific Community Resources Society, Budly Software, and the Canadian Freestyle Ski Association. Additionally, Jeremy currently serves as the CFO for several public and private companies including: Portofino Resources, Centurion Minerals, PayVida Solutions, and Demetra Minerals.
DAVID BUCKLE
VP of Operations
David is the former Senior Grower at In The Zone (currently known as Original BC), a Licensed Producer under the ACMPR. David was responsible for overseeing the junior growing team; developing a cultivation regiment that would ensure satisfaction to Health Canada’s QA/QC standards; overseeing harvests; and all over general cultivation duties. David was integral to establishing the first three harvests for In The Zone, which played a pivotal role in them acquiring their Sales License from Health Canada.
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 14SALES, RETAIL & MARKETING
ADIL HIRJI
Creative Director
Adil joins GTEC with 18 years of experience under his
- belt. A sought after designer with experience in Creative
Direction, Graphic Design, Web Design + Development, E-Commerce Management and Online Marketing, he has worked on high profile campaigns with a broad range of clients such as Alliance Films, Stella Artois, W Hotels, Doctors Without Borders, TIFF, The Liberal Party of Canada, Sony Music, and many more. A big part of his success is his ability to accurately identify customer profiles for a new product/ brand and create an effective strategy to reach them.
SHANNON FORGUES
Retail Manager
Shannon has a diverse background in the food & beverage
- industry. She was previously employed as the Sales &
Marketing Manager at B.C. Tree Fruits Cider company. Shannon also has a broad range of experience working in various positions at premium food & beverage companies, including Quails’ Gate Winery, Waterfront Wines, Joe Fortes and Rydges. Shannon studied digital arts and design at Thomson Rivers University, and also holds WSET and International Sommelier Guild wine and spirit certifications.
SCOTT LOCKE
Director of Sales
Scott was formerly employed as the General Manager
- f CedarCreek Estate Winery. Previously Scott held
progressively senior sales positions at Mark Anthony Group, Vincor Canada and Medallion Wine Marketing. In these roles, Scott was responsible for managing sales portfolios ranging from $130 million to $230 million. Scott’s extensive experience in the premium alcohol industry provides an excellent fit with GTEC’s focus on premium quality craft cannabis. Scott studied arts, geography and human kinetics at the University of British Columbia.
AARON DOW
Director
Aaron practices law as a solicitor at Farris, Vaughan, Wills & Murphy LLP in Kelowna. Aaron specializes in the areas of corporate and commercial law, real estate, bank lending, and wills and estates. Aaron holds an undergraduate degree in Science as well as a Law degree, both from the University
- f Victoria. He currently sits on the Board of Directors of
the Metro Up Financial Literacy Society and is a member
- f both the Canadian Bar Association and the Kelowna Bar
- Association. Aaron also serves on the advisory board of
Doventi Capital Fund II L.P.
DEREK SANDERS
Director
Derek is a partner at Spence Valuation Group, where he specializes in business valuation, mergers and acquisitions and financial litigation support. Prior to joining SVG, he worked for national firms in valuations, transaction advisory and audit roles, in London, Kelowna and Vancouver. Derek has extensive experience in the valuation of privately-held companies for purchase & sales transactions, shareholder disputes, corporate reorganizations and estate freezes. Derek is a Chartered Professional Accountant (CPA), a Chartered Business Valuator (CBV) and a Chartered Financial Analyst (CFA).
NORTON SINGHAVON
Founder, Chairman and CEO
MICHAEL BLADY
Co-Founder and Vice President
BOARD OF DIRECTORS
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 15OUR CAP TABLE
TSXV: GTEC OTC: GGTTF
Shares Issued & Outstanding 117,384,250 Total Options Outstanding 8,710,897 Outstanding Warrants 38,542,604 Total Shares Fully Diluted
164,637,751
Outstanding Warrants & Options
47,253,501 ($ 53,452,964.80)
As of April 5, 2019
CANNABIS LEGALIZATION IS CREATING MULTI- BILLION $ COMPANIES
TOTAL MARKET CAP
6 Companies = $40 Billion
As of April 5, 2019
HEXO
1.7B
Aphria
2.4B
Cronos
5.8B
Tilray
4.5B
Aurora
11.9B
Canopy
14.3B
GTEC HOLDINGS LTD. TSXV: GTEC OTC: GGTTF PRIVILEGED & CONFIDENTIAL 16