Harvest One Cannabis Inc () (OTCMKTS:HRVOF) said Wednesday that the company’s board has initiated a process to evaluate a range of “strategic alternatives” available to the company with the help of financial advisors Mackie Research Capital Corporation and AltaCorp Capital.
In a statement, Harvest One, based in Vancouver, said it has refocused 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.
Harvest One 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, LivRelief and Delivra products, vape pens and other derivative offerings.
READ: Harvest One to get $2M loan from its largest shareholder
The company said a review of its 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.
Harvest One also owns United Greeneries, a licensed producer, and holds a controlling interest in Greenbelt Greenhouse which focuses on cultivation and extraction, and a minority interest in retailer Burb Cannabis.
On January 13, (), advanced a bridge loan of $2 million to the Harvest One. MMJ is the largest shareholder of Harvest One, owning about 25.8% of the company's issued and outstanding shares.
Harvest One said the loan will be used for general corporate purposes including the development and rollout of the company's Cannabis 2.0 product line.
“The company continues to execute on its plan to drive growth through its portfolio of Cannabis 2.0 lifestyle and wellness products,” said the company.
The strategic review has the wholehearted backing of MMJ, said the company.
The board has set up a special committee of independent directors to oversee the strategic review.
Chairman Frank Holler said the board has determined that it is prudent to undertake the strategic review in order to ensure that all available alternatives for the company are being evaluated to maximize value for shareholders.
“As the special committee conducts its review, we remain focused on executing on our strategy and continuing day to day operations as usual," said Holler.
The company has not established a timeline to complete the review. There’s no assurance that any strategic transaction or transactions will result from the strategic review, pointed out the company.
"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."
Contact the author Uttara Choudhury at [email protected]
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