Harvest One Cannabis Inc. announces Renewal of License and Submission of ACMPR Sales Amendment Application; Execution of Wholesale Off-take Agreement
Harvest One Cannabis Inc. (TSXV:HVST) ( "Harvest One" or the "Company") through its wholly owned subsidiary United Greeneries Ltd. ("UG") is pleased to announce that UG has received a renewal of its its Access to Cannabis for Medical Purposes Regulations ("ACMPR") cultivation license (the "License"), and it has submitted an application to Health Canada to amend its License to allow for the sale and distribution of medical cannabis (the "Amendment").
Renewal of License
UG is pleased to announce that it has received the renewal of its License. The License is valid until June 26, 2020. Health Canada has removed the previous production and storage capacity of the License. UG is now permitted to store up to $6,250,000 worth of cannabis at any given time in its Level 8 vault.
Sales Amendment
The application for the Amendment follows the harvest of two independent consecutive cannabis crops and the successful completion of certain biochemical quality control standards and analytical requirements. The issuance of the Amendment is subject to, among other things, a regulatory inspection of UG’s growing facility in Duncan, BC (the "Duncan Facility") and cannot be guaranteed by the Company. However, the Company is confident that UG is compliant with all necessary requirements, that the Duncan Facility will pass the required inspection and that the Amendment will be issued in due course.
Agreement with another Licensed Producer ("LP")
In addition, UG is pleased announce that it has entered into a wholesale off-take agreement (the "Wholesale Agreement") with another LP for the sale of its initial 100kg of cannabis production for a fixed price of CAD$500,000 (or $5 per gram), subject to the receipt of the Amendment. The Wholesale Agreement also includes a right of first refusal for the LP to wholesale purchase UG’s further production for a period of 12 months.
Subject to the receipt of the Amendment, UG plans to continue wholesale distribution and to closely collaborate with this LP in the medical cannabis market while the Company builds a retail platform for the recreational cannabis market over the next few months.
Andreas Gedeon, Managing Director and CEO, comments: "I am delighted to report that our operational activities are unfolding according to our business plan and that our strategic efforts to build a leading international cannabis company are coming together. The issuing of the sales and distribution Amendment to United Greeneries' cultivation license under the ACMPR will constitute a significant value catalyst for our shareholders. We will be providing the market with further operational updates and a strategic outlook for the months ahead shortly".
MMJ Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
