Company acquires majority interest in Ontario-based Greenbelt Greenhouse

Harvest One Cannabis Inc. has acquired an initial 52 percent interest in Hamilton, Ont.-based Greenbelt Greenhouse Ltd., a move that will allow the former company to expand cannabis-infused health, wellness and self-care products.

The agreement involves Harvest One acquiring $3,250,000 of treasury common shares and additional common shares of Greenbelt, states a press release from Harvest One, a global cannabis company that develops and provides lifestyle and wellness products to consumers and patients in regulated markets around the world.

The company entered into a loan facility agreement with Greenbelt, “pursuant to which Harvest One has agreed to provide a secured bridge loan facility to Greenbelt—in the amount of up to $3,500,000 bearing interest of 4.5 percent over a one-year term—pursuant to which Greenbelt may draw down funds for the purpose of completing the planned retrofit of Greenbelt’s greenhouse facility,” the statement explains.

In connection with the transaction, Harvest One’s wholly owned subsidiary, United Greeneries Ltd., and Greenbelt have also entered into an offtake agreement. The “agreement is perpetual in nature and provides United Greeneries with agreed minimum volumes at preferential pricing for the first five years of production and, thereafter, at the then current market rates,” it adds.

“This strategic acquisition will supply Harvest One with high-quality, greenhouse-grown cannabis from Greenbelt’s 152,000 sq. ft. facility,” the statement notes. The acquisition allows for expanding the cannabis-infused products “under the Dream Water and Satipharm brands, and expanding products resulting from the recently announced acquisition of Delivra, following the closing of that transaction,” Harvest One reports.

Beyond the greenhouse, the Greenbelt facility has a 42,000 sq. ft. headhouse that “is an ideal location for future extraction and processing capabilities,” the company notes, pointing out that Greenbelt currently “has an application pending with Health Canada for a standard cultivation licence and a standard processor licence.”

The transaction “provides economical access to a potential 15,000 kg or more of flower per year, once licensed,” the statement reports.

“In addition to the exceptional greenhouse facility, this acquisition also gives Harvest One space to build out its own extraction capabilities upon licensing, which fulfills our goal of vertical integration from cultivation to processing, extraction and, ultimately, premium infused products,” says company CEO Grant Froese.

“With Harvest One’s expanding portfolio of brands and their experience in licensing, coupled with our larger grow facility and space for extraction, we see tremendous upside for Greenbelt, its shareholders and its professional team of operators, as we work together to provide cannabis and cannabis-infused products that consumers will come to know and trust,” comments Ian Adamson, president of Greenbelt.

The transaction is subject to final approval of the TSX Venture Exchange.