February 16, 2021 – Vancouver, British Columbia –
Pursuant to the terms of the Transaction, the Buyer will issue ordinary shares of the Cann Group (the “Buyer Shares”) representing total aggregate consideration of approximately $4 million (the “Initial Purchase Price”), subject to certain adjustments pursuant to the provisions of the Agreement (the “Adjustments”).
Gord Davey, President and Chief Executive Officer of Harvest One, commented, “The Agreement to sell Satipharm and its related subsidiaries is another milestone for Harvest One in the successful completion of the Company’s previously-announced Strategic Review process. The Company has undergone significant transformative change over the past twelve months and has completed a number of substantial divestitures, which now allow our team to focus on the core business of cannabis-infused CPG product development and distribution. These transactions also strengthen the Company’s financial position and provide the necessary support to grow our core consumer brands – Dream Water and LivRelief. We are also delighted to have the opportunity to partner with the Cann Group, on the sale and distribution of Satipharm-branded products in the North American marketplace. This opportunity aligns with our revised business model and allows us to leverage Cann’s capabilities alongside our extensive and established distribution network with major retailers and pharmacy chains across North America.”
The Transaction is consistent with Harvest One’s defined strategy to divest its non-core assets, streamline its operations and utilize strategic manufacturing partners to create efficiencies to support the Company’s CPG business model. Following completion of the Transaction (the “Closing”), the Company will have fully transitioned to become a cannabis-focused CPG company, with a differentiated corporate strategy to develop, commercialize, market and sell both infused and non-infused consumer products.
Proceeds from the Transaction will be used to further reduce outstanding debt and support the Company’s continued operations. This Transaction, combined with previous divestitures and cost-saving initiatives, has resulted in a substantially improved financial position and cost structure for Harvest One that will support the growth of our core consumer brands Dream Water and LivRelief.
Pursuant to the Agreement, Cann Group will issue Buyer Shares representing total aggregate consideration of approximately $4 million, payable as follows:
Commensurate with the Transaction, the Company and the Buyer agree that following Closing, they intend to negotiate the terms for licensing and distribution rights to Satipharm-branded products in North America. The Company and the Buyer intend to engage in good faith discussions and use all commercially reasonable efforts to sign a definitive agreement in relation to the grant of such licensing and distribution rights within ninety (90) days following Closing.
“We are delighted to have found a strong and established partner in the Cann Group, the preeminent Australian diversified cannabis operator, to continue the innovation, production, and global distribution of the Satipharm-Gelpell line of products,” said Gord Davey Chief Executive Officer of Harvest One.
“We are equally delighted that, with the Transaction, Harvest One has the opportunity to continue to represent and distribute Satipharm’s products in the legal cannabis market throughout North America.”
Peter Crock, Chief Executive Officer of Cann Group added, “The acquisition of Satipharm represents a milestone for Cann Group, that allows us to significantly enhance our existing portfolio of medical cannabis products with a clinically-proven, high bioavailable, controlled dosage delivery technology. In Satipharm, Harvest One has developed a differentiated delivery technology that can accommodate any combination of cannabinoids, thereby allowing Cann Group to continue the research and development of innovative cannabinoid offerings for medical patients around the world. We are very pleased to have the expertise of the Harvest One team to work with in this regard and, particularly, to draw on their extensive distribution relationships throughout North America.”
The Transaction is subject to the satisfaction or waiver of a number of conditions under the Agreement, including the receipt of any applicable regulatory approvals. The Transaction is anticipated to close before the end of the first calendar quarter.
About Harvest One
Harvest One is a global CPG 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 cannabis-infused and non-infused consumer packaged goods. Harvest One owns and operates two subsidiaries: Dream Water Global and LivRelief. For more information, please visit www.harvestone.com.
About Cann Group
Cann Group Limited (ASX:CAN) is building a world-class business focused on breeding, cultivating, manufacturing and supplying medicinal cannabis for sale and use within Australia and for approved overseas export markets. The company has established research and cultivation facilities in Melbourne and is developing a state-of-the-art cultivation facility near Mildura, Victoria. Cann Group has executed collaboration agreements that have enabled it to establish a leading position in plant genetics, breeding, extraction, analysis and production techniques required to facilitate the supply of medicinal cannabis for a range of diseases and medical conditions. The Company is commercialising a range of imported and locally sourced and manufactured medicinal cannabis products. Learn more about Cann Group at www.canngrouplimited.com