TSXV – HVT
VANCOUVER, Nov. 20, 2018 /CNW/ - Harvest One Cannabis Inc. (TSXV:HVT) ("Harvest One" or the "Company") is pleased to announce that it has completed its previously announced acquisition of 100% of Israeli-based Phytotech Therapeutics Ltd. ("Phytotech" or "PTL") from Australian-based MMJ Group Holdings Ltd. (formerly, MMJ Phytotech Limited) ("MMJ").
In consideration for the acquisition of PTL, Harvest One paid C$1,000,000 in cash and 8,326,694 Harvest One common shares.
Founded in 2014, Phytotech has developed advanced oral delivery formulations for cannabinoid-based prescription drugs and holds an exclusive worldwide licensing agreement with Yissum Research Development Company, the commercial arm of the University of Jerusalem, for a proprietary lipid nanotechnology.
With the acquisition, Harvest One's wholly-owned subsidiary Satipharm will gain access to advanced patents in favourable jurisdictions that can be used for further R&D and product development to aggressively pursue the rapidly evolving cannabis oils market.
PTL was also responsible for administrating the successful clinical trials using Satipharm's proprietary capsules. The Phase 1 clinical trials demonstrated the safety and high performance of the oral capsule technology, including the effective delivery profile of cannabidiol ("CBD"), while Phase 2 clinical trials were completed in 2017, returning favourable results in the treatment of pediatric epilepsy.
"Harvest One's acquisition of PTL gives all of the Company's businesses access to valuable IP and capabilities that can be used to augment our health and wellness strategy as well as our medical offerings," said Grant Froese, CEO of Harvest One. "This acquisition further demonstrates the global nature of Harvest One, now with a presence in Canada, the United States, the European Union and Israel".
Due to the fact that MMJ is an insider and a related party of Harvest One, this transaction was considered a "related party transaction" as set out in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Harvest One relied on the exemption from the valuation requirements of MI 61-101 contained in section 5.5(a), and from minority approval requirements pursuant to section 5.7(a), due to the fact that the fair market value of the subject-matter of, and the consideration for, the transaction, did not exceed 25% of the market capitalization of Harvest One.
About Harvest One Cannabis Inc. (TSXV: HVT)
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 three wholly-owned subsidiaries; United Greeneries, a Licensed Producer; Satipharm (medical and nutraceutical); and Dream Water Global (consumer), and a minority interest in Burb Cannabis (retail operations). For more information, please visit www.harvestone.com.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. 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.
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SOURCE Harvest One Cannabis Inc.