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Harvest One Cannabis Buys Delivra In All-Stock Deal

Harvest One Cannabis Buys Delivra In All-Stock Deal

Cannabis producer Harvest One Cannabis Inc. (OTC: HRVOF) said Monday it will acquire specialty biotechnology company Delivra Corp. in an all-stock deal valued around CA$19 million ($14.22 million).

What Happened

Under the terms of the agreement, shareholders of Delivra will receive 0.595 shares of Harvest One for each share they own. The implied value represents around CA$0.39 per Delivra share. 

After the transaction is completed, Delivra shareholders will hold around 28.3 million shares of Harvest One, which represents 13.4 percent of the company's outstanding stock. 

Delivra will become a wholly owned subsidiary of Harvest One and will expand Harvest's portfolio of lifestyle and wellness brands.

Harvest One has three wholly owned subsidiaries: licensed producer United Greeneries, medical and nutraceutical company Satipharm and consumer-focused Dream Water. 

Why It's Important

Through Delivra, Harvest One will get access to its LivRelief brand of topicals and creams and distribution channels throughout Canada. The company has a proprietary transdermal delivery system platform that can transfer pharmaceutical and natural molecules through the skin, which it licenses to pharmaceutical companies around the world. 

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Delivra's LivRelief products are available in over 6,000 retail locations, including Walmart, Shoppers Drug Mart, Rexall, Pharmasave and London Drugs.

What's Next

The transaction is subject to a number of conditions including the approval of the Ontario Superior Court of Justice and a two-thirds vote by Delivra shareholders at a special meeting expected in May. The acquisition is expected to close in the second quarter.

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