GTEC Holdings Ltd. (“GTEC” or the “Company“) (GTEC.V) (GGTTF) is pleased to announce that it has entered into a binding letter agreement (the “Supply Agreement“) with Pack4U Holdings ( Canada ) Ltd. (“Pack4U“).
Pack4U is dedicated to providing pharmacies, once the Pharmacy Legislation (as defined below) is in effect, with access to medical cannabis in oral dosage form, packaged in a multi-dose strip format through its unique central fill and inventory tracking system, which features billing & logistics integration with wholesale distributors such as McKesson, Cardinal Health and AmerisourceBergen. The agreement would position GTEC alongside Pack4U’s wholesale distribution network as its exclusive provider of cannabis to the Canadian market. The exclusivity will extend to January 31, 2020 .
“On Friday September 21 st, Canada’s largest pharmacy chain received Health Canada approval to dispense medical cannabis to patients, in which we anticipate that many other pharmacies will seek a solution to service their patient’s needs. We are excited to be partnering with an established group like Pack4U, who has significant relationships and partnerships within the pharmacy industry,” said Norton Singhavon, Chairman and CEO of GTEC. “We view the pharmacy distribution channel as being fundamental to acquiring medicinal patients. The exclusivity period provides us with significant runway to demonstrate our ability to provide a quality medicinal product into these distribution channels.”
The Supply Agreement provides for distribution solutions that benefit GTEC both before and after legislation which will permit Canadian pharmacies to fill and dispense prescriptions for cannabis (the “Pharmacy Legislation“). Furthermore, upon the Pharmacy Legislation being implemented, Pack4U will list GTEC’s wholly owned ACMPR Licensed Producer subsidiaries, as its exclusive wholesale supplier of cannabis for use within the Pack4U System. Pharmacies will be able to access pre-packaged prescription cannabis orders, which would be patient specific without the requirement to carry any inventory on site.
This partnership enables GTEC to position itself alongside an established and rapidly growing pharmacy Network already leveraging Pack4U’s unique model. Pack4U is deploying spencer®, the in-home medication dispenser and connected health hub, with major health systems across North America . spencer® allows for patient-reported health outcomes, giving the ability to directly correlate administration of GTEC products with clinical data in support of mass adoption.
Subject to the implementation of federal, provincial and territorial legislation in Canada that permits the distribution and sale of alternate formats of cannabis products including, without limitation, capsules and tablets (the “Products“), GTEC and Pack4U will collaborate to package, distribute, sell and market the Products at both the wholesale and retail levels through using the Pack4U System.
“We are extremely pleased to partner with the GTEC team to distribute cannabis in solid oral dosage forms. The vertical integration that GTEC has built out provides Pack4U with the comfort of full accountability from plant to pill, which is a key factor in why we believe GTEC will become a leader within the Canadian cannabis industry,” said Chris Williams , Director of Business Development of Pack4U. “Once legislation is implemented, pharmacies will require a solution to support the health of patients through the use of cannabis. The Pack4U system creates a seamless process for pharmacies to participate in the care of the patients without the burden of carrying inventory.”
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