Harvest One Cannabis CEO Grant Froese discusses the company’s Greenbelt Greenhouse acquisition, Gelpell® technology and US strategy.
In the interview below, Froese provides an overview of the company’s four pillar business model, which focuses on cultivation, medical, consumer packaged goods (CPGs) and retail. To this aim, the company has developed a portfolio of brands that fulfill each pillar of its business model.
Harvest One recently acquired a majority interest in Greenbelt Greenhouse, a company with operations in Hamilton, Ontario. Greenbelt Greenhouse’s facility already had organic, HACCP and GMP certification, making it an ideal location for manufacturing, distribution and extraction. The acquisition will allow the company to deliver products at scale across Canada.
Froese also talks about the company’s Gelpell® technology. The capsules are designed to release cannabidiol (CBD) directly into the intestines to increase bioavailability and to ensure consistent dosing. The company’s Phase 1 trials showed that the capsules have 67 percent bioavailability, which is 30 percent higher than other leading CBD products.
Lastly, Froese discusses Harvest One’s US strategy. The company’s Dream Water® brand is currently in over 30,000 stores across North America, including big chains like Walmart (NYSE:WMT) and Kroger (NYSE:KR). Harvest One intends to launch its Satipharm and Delivra products in the US as well; that transaction is pending.
Below is a transcript of our interview with Harvest One CEO Grant Froese. It has been edited for clarity and brevity.
Investing News Network: Please give our investor audience an overview of Harvest One and its subsidiaries.
Harvest One CEO Grant Froese: Harvest One is a global health, wellness and self-care company with a portfolio of established brands. Our business currently operates under four core pillars: cultivation, medical, CPGs and retail. We understand the importance of cultivation, and United Greeneries heads our cultivation arm. However, we believe that our other pillars set us apart from our peers.
Our medical division features our Satipharm brand and its Gelpell technology. It also includes Delivra, with its patent-pending transdermal delivery system and LivRelief™ brand, which is already one of Canada’s best-selling topical creams. Delivra will give us a head start in the infused topical market, and we’ve already started developing formulations.
Our Dream Water brand is in our CPGs division and is already in over 30,000 stores in North America, including Walmart, Kroger and most major airports. Our ability to serve 30,000 storefronts in an industry that struggles to do so really sets us apart from our peers. Completing our true vertical integration is our retail division, Burb, which launched the fashion arm of its business on April 20, 2019. Ultimately, we see ourselves as a CPG company with an underlying necessity of cannabis cultivation.
INN: What is Satipharm, and how does its Gelpell technology work?
GF: To put it simply, we do CBD differently. Each Gelpell capsule contains CBD extract in gelatine beads, which increase bioavailability and the body’s absorption of cannabinoids. The beads are placed in gastro-resistant capsules to ensure that they bypass the stomach and release CBD in the intestine, improving bioavailability. This unique delivery mechanism ensures that consumers receive the same dose of CBD every time.
The average bioavailability for CBD capsules ranges from 20 to 30 percent. Our Phase 1 trial showed that our capsules have 67 percent bioavailability, which is 30 percent higher than other leading CBD products. Satipharm jointly owns the intellectual property for Gelpell along with exclusive global distribution and marketing rights.
INN: What role will Delivra play in Harvest One’s story?
GF: We’re excited to add Delivra to our portfolio to address pain relief. Delivra’s LivRelief brand boasts Canada’s number one natural pain relief and nerve pain creams. Delivra has already developed CBD and THC formulations, which expedites the R&D process and gives us a head start on infused topicals. Once the deal closes in late May, Delivra will add to our top line revenue.
We’ll be rolling out LivRelief in the US and will be infusing it with CBD after the initial product launch. Delivra is headed by Dr. Joseph Gabriele, who is helping us infuse our natural sleep aid, Dream Water, with CBD. The plan is to have Delivra products use the same GMP-certified production and distribution facility as Dream Water.
INN: How does the Greenbelt Greenhouse acquisition support Harvest One’s story?
GF: The Greenbelt Greenhouse acquisition also coincides with our near- and long-term vision. It gives us access to a potential 15,000 kilograms or more of cannabis for C$6.5 million in cash and shares. The facility had organic, HACCP and GMP certification, making it an ideal location for manufacturing, distribution and extraction. Our plan is to use the facility to support product development for oils, vapes and edibles. It will also provide the raw ingredients and cannabinoids for our existing products. We’ll also benefit from the experience of the greenhouse team, which will help alleviate concerns that come with growing at scale.
Harvest One now has diverse facilities across Canada. Our Duncan facility gives us a foothold in a revered cannabis growing region in British Columbia. As we move east, our Lucky Lake facility is located in a historical hemp-growing area that offers outdoor grow potential. Finally, we get back to our Greenbelt facility, which provides greater access to supply and will house our extraction and manufacturing capabilities in the most populated region in Canada. When derivative products come online, we will be able to process, manufacture and distribute them from the largest economic hub in Canada.
INN: What is Harvest One’s US strategy?
GF: We believe that we’re set up for success in the US. Dream Water is currently in over 30,000 stores across North America, including big chains like Walmart and Kroger. We’ll be bringing our Satipharm and Delivra products into the US as well, where we will infuse them with hemp-derived CBD. These products will then be released through our existing distribution channels when and where legal.
INN: What’s next for Harvest One, and how does it fit into the company’s long-term goals?
GF: We’re going to continue to execute on our plans to enhance our facilities and brands. We will continue to scale our Duncan, Lucky Lake and Greenbelt facilities. Greenbelt allows us to develop significant extraction and manufacturing capabilities at scale.
In October, Health Canada is expected to legalize several additional derivative products, so we’re preparing all our brands for release at that point. The introduction of Delivra in the US will be a significant milestone that will give us a head start in the infused topicals. An even bigger milestone will occur when we launch our Gelpell capsules in Canada. Once we do that, we think that the market will understand the potential of this product and brand.
This interview is sponsored by Harvest One Cannabis (TSXV:HVT,OTCQX:HRVOF). This interview provides information which was sourced by the Investing News Network (INN) and approved by Harvest One Cannabis in order to help investors learn more about the company. Harvest One Cannabis is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
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