VANCOUVER, Jan. 13, 2020 /CNW/ - Harvest One Cannabis Inc. ("Harvest One" or the "Company") (TSX-V: HVT; OTCQX: HRVOF) is pleased to announce today that it has entered into a secured loan agreement (the "Loan Agreement") with MMJ Group Holdings Limited ("MMJ") for a loan in the amount of $2 million (the "Loan"), issued on January 13, 2020 (the "Issue Date"). MMJ is the largest shareholder of the Company, owning approximately 25.8% of the Company's issued and outstanding common shares.
"This short-term loan provides us with the flexibility needed to continue the implementation of our enhanced strategic plan while continuing to evaluate longer-term financing options," said Grant Froese, CEO of Harvest One. "There is momentum across our business as we continue to focus on our strengths in brand development and distribution. We see significant opportunities for growth as we leverage our extensive brand portfolio as Cannabis 2.0 takes hold in Canada."
The Company is focused on building and supporting its existing line of value-added infused products. This includes the manufacturing of its Satipharm Gelpell® capsules in Canada, cannabis-infused Dream Water and LivRelief™ products, vape pens and other derivative offerings.
A review of the Company's non-core assets is ongoing as it seeks to reduce its overall exposure to pure cultivation and redirect its efforts and resources on brand development, production and distribution. As previously disclosed, the Company believes the sale of these non-core assets will provide cash proceeds to support the expansion of the Company's core business lines and operational strengths.
The Loan bears interest at a rate of 15% per annum and the principal and accrued interest on the Loan is payable in arrears within 60 days of the Issue Date, subject to certain exceptions. Harvest One will grant MMJ a security interest in all current and after acquired property of the Company and certain of its subsidiaries. The Company will use the proceeds from the Loan for general corporate purposes including the development and rollout of the Company's Cannabis 2.0 product line.
About Harvest One
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. The Company's range of lifestyle solutions is designed to enhance quality of life. Shareholders have significant exposure to the entire cannabis value chain through its wholly-owned subsidiaries: United Greeneries, a Licensed Producer; Satipharm (medical and nutraceutical); Dream Water Global, and Delivra (consumer); as well as a controlling interest in Greenbelt Greenhouse (greenhouse cultivation and extraction), and a minority interest in Burb Cannabis (retail operations). 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 entering into of the Loan Agreement, the use of funds obtained from the Loan, 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.
For further information: Colin Clancy, Investor Relations, [email protected], 1-877-915-7934