TORONTO, ONTARIO – May 1, 2017 (Investorideas.com Newswire) Harvest One Cannabis Inc. (TSX VENTURE:HVST) (“H1”, “Harvest One” or the “Company”) through its wholly owned subsidiaries United Greeneries Ltd. (“UG”) and United Greeneries Saskatchewan Ltd. (“UGS”) is pleased to announce that it has entered into two separate interim agreements with PanCann Streaming Corp. (“PanCann”) to finance the construction of both the Lucky Lake facility and a new additional facility to be identified, in consideration for an equity participation in the applicable entity and a production yield allocation from both facilities. These agreements, if funded, would allow UG to substantially increase its production capacity of medical and recreational cannabis (as applicable) without any capital outlay or further dilution to H1’s shareholders.
Highlights of the Agreements:
Agreement 1: Lucky Lake Agreement
PanCann will provide all necessary funding to complete the construction of the Lucky Lake facility and provide sufficient working capital for its initial operations and in consideration for doing so will receive 49% of the equity of UGS and 40% of the production yield generated by the Lucky Lake facility at a price per gram equal to the cost of production + 10%.
Agreement 2: Additional Site Agreement
The parties will work cooperatively to source an additional expansion site that will be developed by a wholly-owned subsidiary of UG (“NewCo”). Once such site and the construction budget for the new facility have been agreed, PanCann will provide all necessary funding to complete the construction of the new facility and provide sufficient working capital for its initial operations and in consideration for doing so will receive 49% of the equity of NewCo and 50% of the production yield generated by the new facility at a price per gram equal to the cost of production + 10%.
The agreements remain subject to a number of conditions precedent, such as availability of financing on the part of PanCann (including completion by PanCann of a minimum $20 million financing), receipt by H1 of applicable Health Canada and other regulatory approvals, due diligence by the parties, execution of definitive agreements, and the ability of the parties to agree future construction budgets and timelines. There is no assurance that these financings will be completed on the terms contemplated herein or at all.
On completion of Lucky Lake, UG anticipates that the facility will have at least 60,000 square feet of cultivation space. The new additional facility, once chosen by H1 and accepted by PanCann, will be designed to accommodate an additional minimum 60,000 square feet of cultivation space. This combined with the current and fully funded expansion on 13 acres at the existing and operational Duncan growing facility would give UG in excess of 250,000 total square feet of cultivation space.
“This is an excellent opportunity for Harvest One, as it will allow us to substantially increase our group’s cannabis production capacity without any further outlay of capital” says Andreas Gedeon, Managing Director and CEO of Harvest One. “We are also excited to form a long-term partnership with PanCann, considering their excellent management team.”
About Harvest One
Harvest One Cannabis Inc. (TSX VENTURE:HVST) controls operations across the entire cannabis value chain through three business units, with Harvest One serving as the umbrella company over horticultural arm United Greeneries and medical arm Satipharm AG. Each business is strategically located in favourable jurisdictions with supportive regulatory frameworks in place. United Greeneries has received a Canadian medicinal cannabis cultivation licence, making Harvest One one of only a few companies globally with the capacity to commercially cultivate cannabis in a federally regulated environment.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the proposed transactions with PanCann. These proposed transactions are subject to a number of material conditions. They are also subject to a number of termination rights exercisable by either party. There is no assurance that funding from PanCann will be completed on the terms contemplated herein or at all, nor as to the timing of any such funding. In the absence of funding from PanCann, H1 may be unable to fund its intended expansion on a non-dilutive basis or at all. Even if funding from Pancann is completed, H1 would remain responsible for certain material operating costs relating to its proposed second and third site expansions. Please refer to the Filing Statement and other SEDAR filings for further risks, including Health Canada and other regulatory licensing risks, that are relevant to H1’s operations in general and should be considered in connection with its proposed transactions with PanCann. The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Harvest One Cannabis Inc.
+1 (778) 885-2408
Marijuana / Hemp Stocks
Like Marijuana Stocks? View our Marijuana / Hemp Stocks Directory
Join our Group on Linkedin – Marijuana / Hemp Stocks – News and Trends in Green Investing
Global Cannabis Investing – features Investor Ideas Cannabis news
Watch the 420 Cannabis Investor video
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
Additional info regarding BC Residents and global Investors: Effective September 15 2008 – all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.
Source: New feed