Harvest One Cannabis Inc. HVT HRVOF said Wednesday it has started to review various strategic alternatives and has appointed Mackie Research Capital Corporation and AltaCorp Capital Inc. as exclusive financial advisors.
The company has "re-focused" its business on brand development, new products and sales channels that will position it for success by leveraging established North American and European distribution channels, according to a press release.
Harvest One's main focus is on medical and nutraceutical producer Satipharm and consumer goods producers Dream Water Global and Delivra.
The company also owns licensed producer United Greeneries, has a controlling interest in cultivator and extractor Greenbelt Greenhouse and a minority interest in retailer Burb Cannabis.
MMJ Group Holdings Ltd MMJJF, the largest shareholder in Harvest One, advanced a $2-million bridge loan to the company Jan. 13 and has indicated it supports the strategic review process, according to the press release.
"We believe Harvest One is significantly undervalued given its substantial cultivation and Cannabis 2.0 assets," Peter Wall, MMJ's non-executive chairman, said in a statement. "We are committed to working closely with the company to realize on that intrinsic value."
The Harvest One board has hired a special committee of independent directors to supervise the process.
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"Our board has determined that it is prudent at this time to undertake the Strategic Review in order to ensure that all available alternatives for the company are being evaluated to maximize value for our shareholders,” Frank Holler, chairman of the Harvest One board, said in a statement.
“As the Special Committee conducts its review, we remain focused on executing on our strategy and continuing day to day operations as usual."
The company has not set a deadline for the finalization of the strategic review.
Harvest One shares were trading 2.04% higher at 0.090 cents at the time of publication.
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