Harvest One Signs Premium Cannabis Supply Agreement and Provides Facilities Update
VANCOUVER, July 15, 2019 /PRNewswire/ – Harvest One Cannabis Inc. (“Harvest One” or the Company“) (TSX-V: HVT;OTCQX: HRVOF) is pleased to announce its wholly-owned subsidiary United Greeneries Ltd. (“United Greeneries“) has entered into a supply agreement with 9869247 Canada Limited (“Stevens Green”) dated July 1st, 2019, pursuant to which Stevens Green will cultivate and harvest United Greeneries’ premium cannabis genetics at their facility in Ontario.
Harvest One congratulates Stevens Green for receiving their cultivation license from Health Canada on July 5, 2019, and looks forward to working closely with the Stevens Green team to grow select United Greeneries’ premium cannabis genetics in their indoor facility, for distribution under United Greeneries’ established Royal High and Captain’s Choice brands in the adult market.
Under the terms of the agreement, United Greeneries will supply clones of its premium strains, already in production at its licensed facility in Duncan, British Columbia, along with proprietary nutrient and irrigation techniques, and cultivation expertise, in order to ensure the production of consistent, premium craft cannabis its brands are recognized for. In turn, Stevens Green will cultivate, harvest and supply a minimum of 2,000 kgs of premium craft flower per year for an initial term of three years. The agreement contains an option for renewal with an increase in the minimum quantity of cannabis to be supplied, to 5,000 kgs per year.
“We are very pleased to be expanding our national footprint and increasing the supply for our own highly sought-after, premium, craft cannabis flower,” said Grant Froese, Chief Executive Officer of Harvest One. “This agreement triples Harvest One’s current cultivation capacity without further capital or operational outlays.”
Premium Indoor Cultivation
Harvest One’s targeted annual capacity of 20,000 kgs of premium craft flower will satisfy supply agreements with our recreational distribution partners in the provinces of British Columbia, Saskatchewan, Manitoba and, Ontario, as well as our medical distribution partner, Shoppers Drug Mart, through its networks in Ontario and Alberta.
Duncan, British Columbia
- United Greeneries’ licensed facility in Duncan, British Columbia (“Duncan“), continues to produce premium craft cannabis in both raw flower and pre-rolled formats currently distributed in British Columbia, Saskatchewan, Manitoba and, Ontario
- Phase 1 modular expansion at Duncan is complete and the evidence package has been submitted to Health Canada, with licensing expected to occur in Q3 2019
- Phase 2 and 3 modules are now erected in place, with on-site construction aggressively underway and expected to be completed by early Q4 2019
- The full modular expansion will triple Duncan’s annual capacity to 3,500 kgs of premium craft flower
- The 13 acres under lease adjacent to the Duncan facility is available for further strategic modular expansion
Lucky Lake, Saskatchewan
- Harvest One continues to make strong progress on the buildout of its 68,000 sq. ft., state-of-the-art Lucky Lakecultivation and processing facility (“Lucky Lake“)
- Structural upgrades to the roof, mezzanine, and four 10,000 sq. ft. concrete bays that house the growing rooms has been completed
- The Lucky Lake design incorporates fourteen growing rooms that will have the capacity to grow 11,000 kgs of premium craft flower annually at full production
- Final project completion and Health Canada licensing are expected in Q4 2019
- Lucky Lake’s additional 23 acres of farmland has expansion potential for outdoor cultivation
High Quality Greenhouse Cultivation and Extraction
Harvest One’s recently announced strategic acquisition of majority control of Greenbelt Greenhouse Ltd. (“Greenbelt“), provides greenhouse cultivation, processing and extraction facilities to support the Company’s cannabinoid-infused premium health and wellness product strategy. The Greenbelt facility will supply high grade oil for product formulation and innovation of Harvest One’s Dream Water, LivRelief™ and Satipharm brand product lines, as well as vape pens and other regulated derivative products.
- The Greenbelt facility is a 152,000 sq. ft., Acrylite®, organic greenhouse, with an adjoining 42,000 sq. ft. processing facility
- The Greenbelt retrofit is currently underway with completion and licensing expected in Q2 2020
- Upon completion, the Greenbelt facility will have the capacity to grow in excess of 15,000 kgs of high quality cannabis annually at full production
- Extraction capabilities of up to 150 kgs of dried flower a day
- Greenbelt has an application pending with Health Canada for a cultivation and processing license
Further to Harvest One’s press release dated June 21, 2019 in respect to a shares-for-services agreement, the Company has issued 449,492 common shares at a price of $0.69 per share.
ABOUT HARVEST ONE CANNABIS INC.
Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world. The Company’s range of lifestyle solutions is designed to enhance quality of life. Shareholders have significant exposure to the entire cannabis value chain through four wholly-owned subsidiaries: United Greeneries, a Licensed Producer; Satipharm (medical and nutraceutical); Dream Water Global and Delivra (consumer), and a minority interest in Burb Cannabis (retail operations). For more information, please visit www.harvestone.com.
Cautionary Note Regarding Forward-Looking Statements
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. 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.
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