VANCOUVER, BC, Aug. 26, 2020 /CNW/ - Harvest One Cannabis Inc.
("Harvest One" or the "Company") (TSXV: HVT) (OTCQX:
HRVOF) is pleased to announce today, further to its news
release dated June 26, 2020, that the
Company has completed the sale of its United Greeneries' licensed
cannabis cultivation and processing businesses located in
Duncan, British Columbia (the
"Duncan Facility") to Costa Canna Production Limited
Liability Partnership ("Costa LLP") and 626875 B.C. Ltd. (together with Costa LLP, the
"Purchasers") for total cash consideration of $8.2 million (the "Transaction").
"We are delighted to have completed the sale of the Duncan
Facility, which represents an important step in the evolution of
Harvest One, as it focuses on operating as a cannabis CPG company,"
said Andrew Bayfield, Chief
Executive Officer of Harvest One.
"This divestiture along with other key restructuring initiatives
has streamlined our operations and significantly improved the
Company's balance sheet, allowing management to reinvigorate the
growth of its core consumer brands LivRelief™, Dream Water™ and
Satipharm."
Under Harvest One's new strategic direction, the Company will
focus on the growth of its leading CPG brands LivRelief™, Dream
Water™ and Satipharm. Harvest One will continue to accelerate the
commercialization of both infused and non-infused over-the-counter
consumer products, while leveraging its established distribution
channels in North America and
Europe.
In addition to the closing of the Transaction, Harvest One will
commence its previously announced licencing agreement with the
Purchasers (the "Licence Agreement"), which provides Harvest
One with the distribution of Cannabis 2.0 products in Canada including LivRelief's
cannabis-infused topical creams currently available in six
provinces across Canada.
The Company's previously-announced Strategic Review remains
ongoing, as the Company continues to evaluate all strategic
alternatives and potential sales of additional non-essential assets
including the sale of the Company's 50.1% interest in Greenbelt
Greenhouse and the Lucky Lake
facility. The Company will continue to evaluate all transactions or
financing alternatives available to support the growth and
expansion of its CPG brands and product lines.
In conjunction with the closing of the Transaction, the
previously-announced: (i) $1.5
million bridge financing facility (the "Bridge
Facility") from Costa LLP, including the $25,000 commitment fee under the Bridge Facility,
has been repaid in full; and (ii) the secured loan (the
"Loan") from MMJ Group Holdings Ltd.
("MMJ"), including interest and legal fees,
totaling $2,206,397 will be repaid in full. In addition, upon
closing of the Transaction, pursuant to a finder's fee agreement
entered into on February 26, 2020,
between the Company and Mr. Andreas
Gedeon relating to the Duncan Facility, the Company paid an
arms-length finder's fee in the amount of $253,000 to Mr. Gedeon.
About Harvest One
Harvest One is a global company that develops and distributes
premium health, wellness and selfcare products with a market focus
on sleep, pain, and anxiety. Harvest One is a uniquely positioned
company in the cannabis space with a focus on infused and
non-infused consumer packaged goods. Harvest One owns and operates
three subsidiaries; Satipharm (medical and
nutraceutical); Dream Water Global, and
Delivra (consumer); as well as a controlling interest in
Greenbelt Greenhouse. For more information, please
visit www.harvestone.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance about Harvest One and its business and
operations, which include, among other things, statements with
respect to the repayment of the Loan, the Strategic Review, its
corporate strategy moving forward, any transactions arising from
the Strategic Review, and future opportunities available for the
Company. The use of any of the words "could", "intend", "expect",
"believe", "will", "projected", "estimated" and similar expressions
and statements relating to matters that are not historical facts
are intended to identify forward-looking information and are based
on the Company's current belief or assumptions as to the outcome
and timing of such future events. Actual future results may differ
materially. The forward-looking information contained in this press
release is made as of the date hereof, and the Company is not
obligated to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. Because of the
risks, uncertainties and assumptions contained herein, investors
should not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
SOURCE Harvest One Cannabis Inc.