Mr. Norton Singhavon reports

GTEC HOLDINGS LTD. SIGNS OPTION AGREEMENT WITH BATC INVESTMENTS INC.; ISSUES SHARES TO CONSULTANT FOR ACQUISITION OF GENETICS

GTEC Holdings Ltd. has entered into an option agreement dated Nov. 5, 2018, among GreenTec Holdings Ltd., a wholly owned subsidiary of GTEC, and BATC Investments Inc., in connection with the establishment of a joint venture company named GreenTec Retail SK Inc., and has received TSX Venture Exchange approval for an agreement to facilitate the acquisition of cannabis genetics and will issue shares to 1183279 B.C. Ltd. (the consultant) for successfully completing services in connection with the acquisition of cannabis genetics.

Option agreement with BATC

As per the terms of a shareholders' agreement, BATC shall own 25 Class A common shares, and GreenTec shall own 75 Class A common shares. Pursuant to the terms of the shareholders' agreement, GreenTec and BATC will identify, secure and develop retail opportunities in the cannabis sector in the province of Saskatchewan through GreenTec SK.

BATC has the option, exercisable at any time after the date of the option agreement and ending six months after the first retail store opens to the public for business, to require GreenTec to purchase all of its interest in GreenTec SK. The value of BATC's interest in GreenTec SK shall be determined by a chartered business valuator. To satisfy the purchase price, and provided BATC exercises the option, GTEC has agreed to issue to BATC such number of common shares in the authorized capital of GTEC to BATC with an aggregate value equal to the purchase price.

The issuance of the consideration shares is subject to approval by the TSX Venture Exchange.

GTEC issues shares to consultant

GTEC is also pleased to announce that it has received approval from the TSX Venture Exchange for the amended agreement between GTEC, its wholly owned subsidiary, Tumbleweed Farms Corp., and 1183279 B.C. Ltd., an Okanagan-based cannabis consulting firm, for the facilitation of the acquisition of cannabis genetics. The core details of the amended agreement were originally announced on Nov. 16, 2018. Accordingly, GTEC will issue to the consultant 200,000 shares for the services provided under the genetics agreement.

About GTEC Holdings Ltd.

GTEC Holdings is a specialized craft cannabis company dedicated to cultivating premium-quality cannabis in purpose-built indoor facilities. The company is vertically integrated across all major sectors of the Canadian cannabis industry, and holds cultivation, extraction and analytical testing licences.

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