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.