The transaction is consistent with Harvest One’s strategy to divest non-core assets, streamline operations and utilise strategic manufacturing partners to create efficiencies to support the company’s CPG business model.
() (FRA:2P9) () investee Harvest One Cannabis Inc () has entered a definitive sale agreement to sell all issued and outstanding shares of wholly-owned subsidiaries Satipharm Limited, Satipharm AG and Phytotech Therapeutics Ltd to Cann Group Limited (), a diversified medical cannabis company headquartered in Melbourne, Australia.
Cann Group will issue ordinary shares representing total aggregate consideration of around C$4 million, subject to certain adjustments pursuant to the provisions of the agreement.
“Another milestone”
Harvest One president and CEO Gord Davey said: “The agreement to sell Satipharm and its related subsidiaries is another milestone for Harvest One in the successful completion of the company’s strategic review process. ‘
“The company has undergone significant transformative change over the past 12 months and has completed a number of substantial divestitures, which now allow our team to focus on the core business of cannabis-infused CPG product development and distribution.
“These transactions also strengthen the company’s financial position and provide the necessary support to grow our core consumer brands – Dream Water and LivRelief.
“We are also delighted to have the opportunity to partner with the Cann Group, on the sale and distribution of Satipharm-branded products in the North American marketplace.
“This opportunity aligns with our revised business model and allows us to leverage Cann’s capabilities alongside our extensive and established distribution network with major retailers and pharmacy chains across North America.”
Strategic realignment of operations
The transaction is consistent with Harvest One’s defined strategy to divest its non-core assets, streamline its operations and utilize strategic manufacturing partners to create efficiencies to support the company’s CPG business model.
Following completion of the transaction, the company will have fully transitioned to become a cannabis-focused CPG company, with a differentiated corporate strategy to develop, commercialize, market and sell both infused and non-infused consumer products.
Proceeds will be used to further reduce outstanding debt and support the company’s continued operations.
This transaction, combined with previous divestitures and cost-saving initiatives, has resulted in a substantially improved financial position and cost structure for Harvest One that will support the growth of core consumer brands Dream Water and LivRelief.
