Mr. Norton Singhavon reports

GTEC PROVIDES RETAIL INITIATIVES UPDATE

GTEC Holdings Ltd. has completed the previously announced acquisition of 1203648 B.C. Ltd. (RetailCo) for a total purchase price of $2,113,000. RetailCo is in the process of obtaining municipal and provincial approvals to operate a non-medical cannabis retail location. RetailCo will operate under GreenTec Retail Ventures Inc.'s storefront name, Cake Cannabis Co., and will serve as GTEC's flagship store in Western Canada.

Pursuant to the acquisition, the company will gain access to over 4,000 square feet of retail space located in an affluent and diverse neighbourhood in Vancouver, B.C. The retail space has a high-end interior design and includes displays, shelving and storage.

The purchase price comprised: (i) $47,705.75 cash paid to the shareholders of RetailCo; (ii) cancellation of debt in the amount of $2,294.25 owed by the vendors to GTEC; and (iii) the issuance of $2,063,000 worth of common shares in the capital of GTEC. Accordingly, the company issued 3,438,333 common shares to the vendors at a deemed value of 60 cents per share.

The common shares issued in connection with the acquisition are subject to a statutory hold period of four months and one day from the date of issuance thereof. As well, 1,719,167 common shares issued are subject to a contractual escrow period until RetailCo successfully obtains all necessary approvals for the retail sale of non-medical cannabis. In the event that RetailCo does not obtain all necessary approvals by April 26, 2020, the escrowed shares will be returned to GTEC treasury for cancellation.

Termination of AssetCo letter of intent

Further to previous announcements on Nov. 7, 2018, and March 22, 2019, GTEC has exercised its right of termination under the binding letter agreement with a private British Columbia corporation (AssetCo) to acquire two other retail locations in Vancouver.

About GTEC Holdings Ltd.

GTEC is a specialized cannabis company dedicated to cultivating ultrapremium-quality cannabis in purpose-built indoor facilities. The company is vertically integrated across all major sectors of the Canadian cannabis industry and is currently licensed by Health Canada for standard cultivation, standard processing and analytical testing. GTEC has completed three cultivation facilities and is currently cultivating and selling cannabis. The company has two additional facilities coming on stream in the latter half of 2019, which will increase annual capacity from 4,000 kilograms to 14,000 kilograms.

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