Harvest One Cannabis (TSXV: HVT) has commenced a strategic review of alternatives for its entire operation this morning, in light of the struggles exhibited across the cannabis sector. Both Mackie Research and AltaCorp capital have been named as financial advisors in the process as a result.
While the strategic review has just commenced, Harvest One aims to focus its efforts on that of Satipharm, the companies medical and nutraceutical manufacturer, as well as that of Dream Water and Delivra, which are both consumers goods producers.
With respect to its cannabis operations, the firm will still retain ownership of United Greeneries in the near term, with the firm approaching the operation from the less than unique angle of focusing on brand development. The company will also focus efforts on sales channel development as well as innovative product development, however the firms main focus will no longer be its cannabis operations.
A special committee has been established to oversee the review of the firms operations, however no timeline has been given for the completion of the review. In the interim, majority shareholder MMJ Holdings has advanced the company $2.0 million as of mid-January, and is supportive of the review process due to the current viewpoint of the firm being undervalued based on its cultivation and cannabis assets.
Harvest One Cannabis last traded at $0.12 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.
