VANCOUVER, Feb. 26, 2020 /CNW/ - PRESS RELEASE - Harvest One Cannabis Inc. has announced that it has entered into definitive agreements to sell its interest in Burb Cannabis Corp., a cannabis retailer located in British Columbia, as well as its interest in the 398-acre site in Lillooet, British Columbia.
Pursuant to the Burb Transaction, Harvest One has sold its 19.9% equity stake in Burb back to the founders of Burb and has forgiven a shareholder loan with a face value of $250,000 in exchange for total cash consideration of $1,512,600. In addition, Burb and Harvest One have concurrently agreed to terminate Harvest One's option to purchase a majority equity interest in Burb as well as outstanding warrants in the capital of Burb held by Harvest One. The Burb Transaction closed on Feb. 25, 2020. Upon the closing of the Burb Transaction, Grant Froese, CEO of Harvest One, has resigned from the Board of Directors of Burb.
Pursuant to the Lillooet Transaction, Harvest One has entered into a contract to sell the Lillooet Property for cash consideration of $770,000. The transaction is scheduled to close on March 31, 2020.
"The sales of our equity interest in Burb and the Lillooet Property are part of our ongoing review of non-core assets, which we initiated as part of a broader enhanced strategic plan announced in November 2019," said Froese. "Cash proceeds from these transactions will have an immediate positive impact on our financial position and will support our continued branding and distribution efforts related to Cannabis 2.0."
