Harvest One Cannabis Inc. announced that its Board of Directors has initiated a process to evaluate a range of strategic alternatives available to the Company (the “Strategic Review”). Mackie Research Capital Corporation and AltaCorp Capital Inc. have been appointed to act as exclusive financial advisors to the Company with respect to the Strategic Review.
Harvest One has re-focused its business on brand development, innovative new products and sales channels which will position the Company for success by leveraging its established distribution channels in North America and Europe. The Company continues to execute on its plan to drive growth through its portfolio of Cannabis 2.0 lifestyle and wellness products. Going forward, the Company’s main focus will be Satipharm, a medical and nutraceutical manufacturer; as well as Dream Water Global and Delivra, both consumer goods producers. The Company also owns United Greeneries, a Licensed Producer, and holds a controlling interest in Greenbelt Greenhouse (cultivation and extraction) and a minority interest in retailer Burb Cannabis (retail).
The Board of Directors has appointed a special committee of independent directors (the “Special Committee”) to oversee the Strategic Review.
Frank Holler, Chairman of the Board of Directors of the Company, stated: “Our Board has determined that it is prudent at this time to undertake the Strategic Review in order to ensure that all available alternatives for the Company are being evaluated to maximize value for our shareholders. As the Special Committee conducts its review, we remain focused on executing on our strategy and continuing day to day operations as usual.”
MMJ Group Holdings Limited (“MMJ”), Harvest One’s largest shareholder, advanced a bridge loan of $2.0 million to the Company on January 13, 2020 and has indicated its support for the strategic review process.
“We believe Harvest One is significantly undervalued given its substantial cultivation and Cannabis 2.0 assets,” said Peter Wall, MMJ Non-Executive Chairman, “and we are committed to working closely with the Company to realize on that intrinsic value.”
The Company has not established a definitive timeline to complete the Strategic Review and no decisions related to any strategic alternative have been reached at this time. There is no assurance that any strategic transaction or transactions will result from the Strategic Review. The Company does not intend to comment further with respect to the Strategic Review unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with the requirements of applicable securities laws.