Company expands reach across the value chain to ensure quality, consistency of raw materials for R&D and subsidiaries
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VANCOUVER, April 30, 2019 /CNW/ - Geyser Brands Inc. (TSXV:GYSR) ("Geyser Brands" or the "Company") announces a robust and healthy second harvest. Geyser Brands has also tripled its growing capacity for an output of 51,000 grams of CBD-dominant flower, with the aim of researching optimal cannabinoid profiles for its conditions-based healthcare products. Geyser Brands' vision is to supply consumer healthcare products to both Canadian and global markets with its line of hemp-derived oil and proposed CBD healthcare offerings to the consumer and pet care sector. These products will include special formulations that assist in the improvement of a wide range of specific healthcare conditions.
"We look forward to establishing ourselves as a leading provider of health-focused hemp and CBD products in North America, the European Union, and Asia," said Andreas Thatcher, CEO of Geyser Brands. "With our pending acquisition of Solace Management and its world-class brands - including 23 products and 59 SKUs found in up to 3,000 retail locations - we are rapidly expanding our reach down the value chain to ensure a consistent supply of CBD-dominant flower for our anticipated processing and sales licenses."
Already holding a cultivation license from Health Canada, Geyser Brands has also applied for processing and sales licenses to enable it to legally infuse its expected line of health and wellness products with cannabinoids. Geyser Brands intends to infuse its products with hemp-derived oils and CBD, and to sell them in Canada and abroad. Health Canada's proposed regulations for cannabis edibles, extracts, and topicals are expected to be adopted into law in October 2019. Geyser Brands intends to be a leader in this new industry.
Further to Geyser Brands' commitment to the health and wellness community, it has also submitted an application to Health Canada to upgrade its facility to include mothering and cloning rooms. Geyser Brands has entered into talks with Health Canada approved seed banks and LPs to secure high-CBD seed strains to ensure consistent cannabinoid profiles for its brands and products. This will not only ensure greater control over its value chain, but will also solidify its cost efficiencies to allow further re-investment in future R&D.
As previously announced, Geyser Brands has signed a non-binding Letter of Intent to acquire Solace Management Group Inc. for an aggregate purchase price of $3.9 million, consisting of $400,000 cash and 5,833,33 common shares at a deemed price of $0.60 per share. The proposed acquisition of Solace Management will not be an "arm's length transaction" as defined under the rules and policies of the TSX Venture Exchange. Closing of the Solace acquisition remains subject to the entry by the parties into a binding definitive agreement, the satisfactory completion of due diligence investigations, and the receipt of all necessary regulatory approvals, including the 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 is 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. The company is exclusively focusing on leveraging 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. The company's proprietary NanoFusion technology surrounds oils and solves for the insolubility of CBD. Geyser Brands will utilize its 7,000 sq. ft. licensed facility in British Columbia for the manufacturing and distribution of its hemp and CBD-based products internationally. For more information, visit the company's website at www.geyserbrands.com.
On Behalf of the Board of Directors
Director and CEO
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. 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.
For further information: #330-321 Water St., Vancouver, B.C., V6B 1B6, Tel: (604) 315-4400, www.geyserbrands.com, [email protected]