Infused single-ingredient pet treats to drive future growth in global pet care industry

VANCOUVER, May 30, 2019 /CNW/ - Geyser Brands Inc. (TSXV:GYSR) ("Geyser Brands" or the "Company") announces that its acquisition target — Solace Management Group Inc. ("Solace") — has unveiled its latest brand, WildTails. Out of the gate, WildTails has developed new product lines with three available SKUs for both dogs and cats, complementing the robust sales of Solace's Apawthecary Pets brand. The new line will be available in 3 freeze-dried infused single ingredient servings of white fish, beef and chicken. In anticipation of completing the acquisition of Solace, Geyser Brands is negotiating several orders and distribution contracts that are expected to be announced in Q3 2019, beginning with Asia.

Geyser Brands Inc. logo (CNW Group/Geyser Brands Inc.)

A rise in the adoption of pets, a burgeoning global middle class that is more concerned with health, wellness, and alternatives to traditional pharmaceuticals than ever, and a growing demand for premium care products are few factors expected to drive growth in the pet care market, which was estimated by Grand View Research to be USD 131.7 in 2016, with expected CAGR of 4.9% from 2016 to 2025.

Freeze-dried products have several advantages that address this growing market's needs. By being dried through intensely low pressures, they are lighter and smaller, and deliver more protein in a smaller package. This is an improvement over dehydration, which uses a high heat environment that tends to degrade the nutritional value of products. The freeze-drying process also extends the shelf life of the product without needing chemical additives, a major boon for pet owners concerned about allergens and inflammatory ingredients.

Geyser Brands anticipates that, once the acquisition of Solace is complete, WildTails' products will harness Geyser Brands' proprietary NanoFusion to infuse hemp into the proteins. NanoFusion is Geyser Brands' proprietary all-natural nano-technology that emulsifies the hemp molecule, a lipid, so that it can co-mingle with other non-fat liquids. NanoFusion, which took 2 years to perfect,  provides features unique to the existing market, such as no discernible taste, increasing the bioavailability of the hemp molecules, and extending the shelf-life and preservation of the product.

It is expected that WildTails' products will be infused before the freeze-drying process, with almost no change in dosing. This process will be a significant improvement over competing products which use the more common practice of coating the products with oils after freeze-drying.

The use of NanoFusion with WildTails also fits into Geyser Brands' business model, as the process can be applied to all forms of hemp. In markets without a legal CBD environment, WildTails will be produced with hemp seed oil. In markets with established regulations and a clear compliance pathway, WildTails can deliver the same products with CBD as a value-added ingredient.

Brad Kersch, President of Solace, commented: "We look forward to leveraging the Geyser Brands platform. Obviously, Geyser Brands' capacity in compliance is key to working successfully in global markets, and Geyser Brands' management understands and supports our goal to be the dominant cannabis-related pet food brand in Canada and world-wide."

Andreas Thatcher, CEO of Geyser Brands, commented "We are impressed with the way the Canadian market has embraced the pet products produced by Solace, and we expect WildTails to take that consumer satisfaction to new markets. We are excited to anticipate the completion of our acquisition and working with management to create a premium global brand."

As previously announced, the acquisition of Solace by Geyser Brands is subject to the execution of a binding definitive agreement, the completion of due diligence investigations and the receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange.

ABOUT GEYSER BRANDS

Geyser Brands Inc. builds health-based hemp CBD consumer products in the Nutraceutical, Cosmetics, Food & Beverage and Pet sectors world-wide.  R&D investment in NanoFusion, a proprietary all-natural nanotechnology, delivers topical, cream, beverages and baked goods, oil, and tincture formulations with superior bio-availability and water-solubility.

Geyser Brands owns a Health Canada approved Licensed Producer ("LP") in Port Coquitlam, B.C. that holds a cultivation license and is anticipating its processing and sales licenses. Geyser Brands leverages these assets to provide the regulatory infrastructure for its global brands and distribution strategy, acquiring hemp- and plant-based brands and infusing them with new CBD product lines in jurisdictions where the therapeutic ingredient is legal. Geyser Brands' proprietary NanoFusion technology surrounds oils and solves for the insolubility of CBD. Geyser Brands will utilize its licensed facility in British Columbia for the manufacturing and distribution of its hemp and CBD-based products internationally. With its anticipated R&D license, it will invest in product development and clinical trials to promote the acceptance of products and brands in all markets.

For more information, visit Geyser Brands' website at www.geyserbrands.com.

On Behalf of the Board of Directors

Andreas Thatcher
Director and CEO

THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.

CAUTIONARY AND FORWARD-LOOKING STATEMENTS

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Forward‐looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the marijuana industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. In addition, the proposed acquisition of Solace Management Group Inc. remains subject to the execution of a binding definitive agreement and other conditions, including the approval of the TSX Venture Exchange.  There is no assurance that the proposed acquisition of Solace will be completed as described in this news release, or at all.  Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

SOURCE Geyser Brands Inc.

Copyright 2019 Canada NewsWire

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