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VANCOUVER, Oct. 30, 2019 /CNW/ - Geyser Brands Inc.
(formerly Kanzen Capital Corp.) (TSX-V: GYSR) ("Geyser
Brands" or the "Company") is pleased to announce that it
has signed a definitive joint venture agreement (the "JV
Agreement") with Factory Brewing Ltd. (DBA "Craft
Collective") to jointly develop, manufacture, market, and sell
non-alcoholic cannabis-infused beverage brands in Canadian markets
in two phases (the "Joint Venture").
Pursuant to the terms of the JV Agreement, the Joint Venture
will be structured as a new company (the "NewCo"), with two
standing committees for the purpose of collaboration and
cooperation on research, development and commercialization of its
products. The first committee will be dedicated to identifying,
developing and testing formulations for commercialization. The
second committee will be dedicated to identifying and evaluating
brands, including those brands owned by the Company and Craft
Collective, for commercialization. Each committee will be comprised
of 3 members from each of Geyser Brands and Craft Collective with
the necessary expertise for each committee's mandate, with the
Company appointing the Chair of each committee. The resulting NewCo
will combine the craft beverage manufacturing, marketing and
distribution expertise from Craft Collective with Geyser Brands'
cannabis expertise, including leveraging its licensed producer
facility, formulation expertise, and distribution channels.
Under the terms of the JV Agreement, the NewCo will immediately
commence developing multiple product formulations and branding for
both cannabis and non-cannabis products for introduction into the
Canadian market. Craft Collective and NewCo will enter into a
mutually agreeable non-cannabis product manufacturing and sales
agreement (the "Non-Cannabis Product
Manufacturing and Sales Agreement") in
which Newco will outsource to Craft Collective the manufacturing
and distribution of its non-cannabis products. Production of
non-cannabis products will take place at Craft Collectives'
facility in Vancouver, British
Columbia. Upon receipt of regulatory approval for the
production of cannabis products, Craft Collective and NewCo will
use commercially reasonable efforts to enter into a definitive
agreement (the "JV Management Agreement") in
connection with the day to day management of the NewCo by Craft
Collective, on terms and conditions mutually agreeable and
customary in a transaction of this nature. Subject to the terms of
the JV Management Agreement, all cannabis products will be
manufactured at Geyser Brands' licensed facility in Port Coquitlam, British Columbia.
Pursuant to the terms of the JV Agreement, Geyser Brands will
have a 75% interest in the NewCo, with Craft Collective's 25%
interest being reserved and issued upon completion of certain
conditions outlined in the JV Agreement, including receipt of
regulatory approval for the production of cannabis products, the
execution of the JV Management Agreement and the execution of a
mutually agreeable shareholder agreement (collectively, the
"Issue Conditions"). In the event the Issue
Conditions are not satisfied or waived by Geyser Brands on or
before December 31, 2019, or such
other date as mutually agreed by the parties, there will be no
obligation for NewCo to issue any interest to Craft Collective.
Geyser Brands CEO, Andreas
Thatcher commented, "Geyser Brands continues to build and
lead the way in establishing its position as a health and wellness
CPG company that gives lift to products with the addition of
cannabis. Partnering with Craft Collective and jointly leveraging
our unique areas of expertise will allow both parties to enter this
emerging market and develop high-quality non cannabis and
cannabis-infused beverages for the consumable cannabis market."
Craft Collective CEO, Andrew
Harris stated, "This joint venture between Craft Collective
and Geyser Brands marks an exciting milestone for our company as we
continue to release innovative beverage brands to market. We look
forward to launching impactful products through this combination of
our expertise."
About Craft Collective
Factory Brewing Ltd. (doing business as "Craft Collective") is
an award-winning manufacturing company which provides craft brand
development and contract beverage production services. It has a
70,000hl facility in Vancouver,
BC, with state-of-the-art beverage formulations and
flavouring lab delivering brewed and ready-to-drink products for
the craft market. Craft Collective operates a full suite of
management services including an internal sales and marketing
operations that manages all retail and provincial liquor boards
from BC to Manitoba.
About Geyser Brands
Geyser Brands Inc. is a consumer health and wellness company
operating within the Canadian cannabis industry. Geyser's
proprietary delivery technologies include all natural
nano-technology, slow-release mechanisms, and non-molecule
degrading baking processes. The Company provides expertise from
conceptual innovation to manufacturing and end-use distribution.
Geyser owns a suite of several brands within the consumer-packaged
goods market that are offered nationwide at many recognized
retailers. Geyser Brands owns a Health Canada approved
Licensed Production facility and operates 15,000 sqft of
manufacturing space in two GMP facilities near Vancouver, BC.
For more information, visit Geyser Brands' website at
www.geyserbrands.com.
On Behalf of the Board of Directors
"Andreas Thatcher"
____________________________________
Andreas Thatcher
Director and CEO
andreas@geyserinc.ca
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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.
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. Additional
information relating to Geyser is available
at www.sedar.com.
SOURCE Geyser Brands Inc.