In the emerging world of pot stocks, investors are oh-so-used-to debt. Often mounds of it that can put in question how the company can ever grow without ridiculous amounts of shareholder dilution. To that end, it is refreshing to see a cannabis company taking care of its books. On Monday, GTEC Holdings Ltd. (TSX-V:GTEC) (OTCQB:GGTTF) said that it repaid in full two senior secured promissory notes with NFS Leasing Canada Ltd.
From its three fully licensed facilities (B.C., Ontario and Alberta), Kelowna, British Columbia-based GTEC cultivates, markets, and distributes handcrafted, high quality cannabis products into both medical and recreational sales channels. It’s recreational products are branded BLK MKT™, Tenzo™, Cognōscente™ and Treehugger™, while its medical brand is dubbed GreenTec™.
The notes had an aggregate principal balance of roughly $6.0 million. In March, GTEC paid off a promissory note with Invictus too. Clearing the note with NFS means that GTEC is now debt-free and the company will save more than $1.0 million in interest payments over the next year.
In addition to removing all debt liabilities, GTEC boasts a current cash position of approximately $19 million.
Venture-listed shares of GTEC are flat at $0.77 in early Monday activity, but have been stalwarts so far in 2021, ballooning from a dime each to as much at $1.10.
