Kelowna, BC, March 08, 2021 (GLOBE NEWSWIRE) — GTEC Holdings Ltd. (TSXV:GTEC) (OTCQB: GGTTF) (FRA: 1BUP) (“GTEC”, the “Company” or “GTEC Cannabis Co.”) a multi-licensed producer of handcrafted, high quality cannabis, is pleased to announce the signing of an export deal pertaining to the Israeli medical cannabis market (the “Agreement”).
- Executes multi-year agreement to export a minimum of 500 KG annually to Israel, one of the world’s largest import markets for medical cannabis
- Agreement enables GTEC to enter into global distribution of its handcrafted ultra-premium flower
- Export deal demonstrates the demand for GTEC products within Canada and globally
The Company has entered into an agreement with Focus Medical Herbs Ltd. (“Focus Medical“), an Israeli medical cannabis company with which IM Cannabis Corp. (“IMC”) (NASDAQ: IMCC) has exclusive distribution agreements to export cannabis from Canada to Israel, subject to meeting all regulatory requirements both in Israel and Canada. Under the terms of this agreement, GTEC is expected to become a key supplier of cannabis to Focus Medical. The Company’s initial shipments of cannabis will be produced by its wholly-owned subsidiary, Grey Bruce Farms (“GBF”), located in Tiverton, Ontario, with the expectation that GTEC will export 500 to 1,000 KG per year.
Michael Blady, Co-founder and VP of GTEC commented, “We are very excited to sign this agreement adding our ultra-premium product to the well-known IMC brand in Israel, this demonstrates the robust demand for GTEC products within Canada and globally. With the signing of this deal, GTEC will become an up-and-coming player within the global cannabis market, while continuing to drive significant incremental revenues and gross margin.”
“Medical cannabis patients in Israel are starting to demand more imported indoor products from Canada. By partnering with GTEC to supply high-THC flower from its Canadian indoor facility, IMC is leveraging this increasing demand from patients and will, for the first time, bring into Israel a truly ultra-premium quality product. We are thrilled about the launch of this new category and expect to grow its market share domestically,” Oren Shuster, Chief Executive Officer of IMC commented.
In order to qualify as a supplier to the Israeli medical cannabis market, GBF successfully completed a rigorous audit process conducted by The Institute of Quality & Control (“IQC), the largest private certification body in Israel. This comprehensive audit process covered all aspects of the GBF operations, including cultivation, quality assurance and human resources. As a result, GBF has received its ICANN-G.A.P (Good Agricultural Practices) accreditation from IQC.
The Company considers the Agreement to reinforce GTEC’s competitive advantage in the production of ultra-premium cannabis. Currently there are more than 320 Standard Cultivation Licences issued by Health Canada, and being selected as Focus Medical’s key supplier demonstrates the quality and demand of GTEC’s products. The Company will continue to evaluate opportunities within the global cannabis market, with the objective to further expand its global distribution channels.
About IM Cannabis Corp.
IMC is a multi-country operator (MCO) in the medical cannabis sector headquartered in Israel and with operations In Israel and Germany. Over the past decade, the IMC brand has become synonymous with quality and consistency in the Israeli medical cannabis market. IMC has also expanded its business to offer intellectual property-related services to the medical cannabis industry.
In Europe, IMC operates through Adjupharm, a German-based subsidiary and EU-GMP certified medical cannabis distributor. IMC’s European presence is augmented by strategic alliances with various pan-European EU-GMP cultivators and distributors to capitalize on the increased demand for medical cannabis products in Europe and bring the IMC brand and its product portfolio to European patients.
About Focus Medical Herbs Ltd.
Focus Medical is one of eight original licensed producers of medical cannabis in Israel and has over 10 years of experience growing high-quality medical cannabis in the Israeli market. Focus Medical is an “investee” of IMC under IFRS due to the IMC’s “de facto control” over Focus Medical, despite not having any direct or indirect ownership of it. Focus Medical has an exclusive commercial agreement with IMC to distribute its production under the IMC brand. In addition to its own capacity, Focus Medical has signed supply agreements with other cultivators for additional supply using its proprietary genetics and for sale under the IMC brand.