On 26 June 2020, Harvest One Cannabis Inc. (“HVT” or “Harvest One” or the “Company”) (TSX-V: HVT; OTCQX: HRVOF) has announced a number of key initiatives:
A copy of the HVT announcement can be found here.
HVT has entered into an acquisition agreement (the “Acquisition Agreement”) to sell its United Greeneries’ licensed cannabis cultivation and processing businesses (the “Transaction”) located in Duncan, British Columbia (the “Duncan Facility”) to Costa Canna Production Limited Liability Partnership (“Costa LLP”) and 626875 B.C. Ltd. for total cash consideration of CAD8.2 million.
Harvest One will retain all assets and intellectual property associated with its Cannabis 2.0 product portfolio including, the Company’s LivReliefTM cannabis-infused topicals currently on sale in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.
“The agreement to sell our Duncan Facility and its related operations represents a strategic step forward for Harvest One, further divesting from its capital intensive cultivation activities and firmly establishing ourselves as a cannabis-focused CPG company,” said Andrew Bayfield, Chief Executive Officer of Harvest One. “We will continue to focus on expanding our core brands of LivRelief™, Dream Water™ and Satipharm together with the commercialization of Cannabis 2.0 product offerings in Canada.”
In conjunction with the Acquisition Agreement, Harvest One has secured a CAD1.5 million bridge financing facility (the “Bridge Facility”) from Costa LLP which will be made available to the Company upon signing the Acquisition Agreement. It is the intention of the parties thereto that the Bridge Facility will mature and be repaid in full upon the closing of the Transaction. In order to facilitate the availability of the Bridge Facility, MMJ has agreed to subordinate its security interest1 in the Duncan Facility, to Costa LLP. MMJ’s CAD2m loan facility will be repaid from the settlement of the Duncan Facility.
HVT also announced its financial and operating results for the three and nine months ended March 31, 2020.
MMJ is the largest shareholder holding approximately 26% of HVT which is one of the largest investments within the MMJ cannabis and hemp portfolio.
MMJ’s investment in HVT comprises of:
Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world.
1 MMJ’s facility has a maturity date of June 8 with a deferred repayment date of 17 July 2020.