On June 8, 2020, GTEC Holdings Ltd. closed a debt financing of $3.95 million with NFS Leasing Canada Ltd. pursuant to a promissory note for a term of 36 months. Proceeds from the financing were used by GTEC to pay off outstanding principal and interest owed to MMCAP Canadian Fund LP in full.
In connection with the financing, certain security interests have been granted to NFS through general security agreements and mortgages on certain real property owned by GTEC and its wholly-owned subsidiaries. Subject to final acceptance by the TSX Venture Exchange, GTEC will issue a total number of common shares to NFS equal to $395,000. GTEC intends to issue 2,135,135 common shares in the capital of GTEC, which will be subject to a three-year release schedule, with 355,856 shares being released each six-month period.
Cassels acted as external counsel to GTEC with a team comprised of Carla Potter and Tristan Davis (Banking & Specialty Finance), Jonathan Sherman and Brandon Manhas (Securities and Cannabis), and Ross Ramgoolam and Randy Bassi (Real Estate & Development).