Harvest One Cannabis (TSXV: HVT) has continued with its strategic review of its operating assets, this morning announcing that it has divested of its United Greeneries licensed facility in Duncan, BC for total cash consideration of $8.2 million. The sale of the asset is in connection with the firms focus on transforming to a CPG business model.
The facility was sold to Costa Canna Production Limited Liability Partnership and 626875 BC Ltd, whom previously provided a $1.5 million bridge loan to the company. While the BC facility has now been divested, Harvest One is still looking to dispose of what it refers to as “non-essential assets,” which includes the firms majority interest in Greenbelt Greenhouse and its Lucky Lake facility. The strategic review in this aspect is still ongoing as it looks for potential acquirors for these assets.
As part of Harvest One’s strategic review, the company has determined that it wishes to focus on its consumer packaged goods products. To this end, it means refocusing on the brands LivRelief, Dream Water, and Satipharm. The company will focus on both non-infused and infused product lines of these brands, with the company already having entered a licensing agreement with the purchases to provide distribution of the cannabis 2.0 products.
As part of the transaction, the company has paid of a $1.5 million bridge financing facility, and will also be paying off a secured loan from MMJ Group Holdings to the tune of $2.2 million.
Harvest One Cannabis last traded at $0.07 on the TSX Venture.
Information for this analysis was found via Sedar and Harvest One Cannabis Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
