Tuesday, 02 Jun 2020

Harvest One Enters into Definitive Agreement to Acquire Dream Water

VANCOUVER: Harvest One Cannabis Inc. (TSXV:HVT) ("Harvest One" or the "Company") is pleased to announce it has today entered into definitive agreements to complete the acquisition of all the outstanding shares of Dream Water Products Canada Inc. ("Dream Water Canada") and Sarpes Beverages, LLC (dba Dream Products, LLC) ("Dream Water USA") in exchange for a combination of USUSD 12.5 million in cash and CUSD 18.5 million in shares at a deemed price of CUSD 1.00 per share, representing total consideration of approximately CUSD 34.5 million (the "Transaction").

After closing, Harvest One will continue to hold a substantial cash position of approximately C$62 million and zero debt. As part of this Transaction, the combination of Dream Water Canada and Dream Water USA will become Dream Water Global ("Dream Water") and own the worldwide rights and all intellectual property to and for Dream Water.

Strategic Rationale

The Transaction will deliver a ready-made consumer goods marketing, distribution and product development division to Harvest One.

Dream Water is the #1 selling natural, 2.5oz, 0-calorie, liquid sleep shot. Along with its sleep powder, Dream Water helps promote relaxation and support restful sleep. Dream Water is sold online and in over 30,000 North American retail outlets, while currently generating approximately $6 million per annum in revenue from its current product lines. Harvest One sees significant potential to grow the Dream Water brand and proposition by:

Scaling its current e-commerce and direct to consumer efforts;
Bringing to market Dream Water's robust product innovation pipeline; and
Expanding the Dream Water brand into the cannabis space; most notably, to produce additional cannabidiol ("CBD") and/or Full-Spectrum Hemp based product lines where said products can be manufactured and sold within federally regulated markets.

As a result of the Transaction, Harvest One expects to achieve its strategic goal to operate as a complete, vertically-integrated global group with cannabis cultivation (United Greeneries) plus the manufacturing, marketing and distribution of both medical and pharmaceutical cannabis products (Satipharm) and consumer goods marketing, manufacturing and distribution with Dream Water.

Commenting on the Transaction, David Lekach, CEO of Dream Water USA shared the following, "We are thoroughly impressed with what Andreas and the whole Harvest One team have built to date. We feel that they are a great strategic partner. As the go-forward steward of the Dream Water proposition, Harvest One will help the brand reach its full potential."

(PRN | 2 years ago)