Harvest One

A World Class Cannabis Company

This profile is part of a paid investor education campaign.*


Harvest One (TSXV:HVT) is a global cannabis company focused on delivering high quality, innovative cannabis products and technology to regulated markets around the world. Shareholders have significant exposure to the entire cannabis value chain through three wholly owned operating subsidiaries: Horticultural arm and Canadian Licensed Producer United Greeneries Ltd., medical and pharmaceutical arm Satipharm AG in Switzerland and Dream Water, the Group’s consumer goods division.

United Greeneries is a Licensed Producer (LP) under the Access to Cannabis for Medical Purposes Regulations (ACMPR) with a highly experienced horticultural team. Harvest One has also received its sales license for the United Greeneries brand. The company is building large-scale horticultural operations to meet the demand from both the medical market and that expected from the emerging Canadian recreational cannabis market.

In February 2018, United Greeneries launched its e-commerce retail platform for its two medicinal brands: Royal High and Captain’s Choice. Both products feature high-quality cannabis flowers produced at the company’s facilities.

Satipharm is a Swiss-based medical cannabis company specializing in oral delivery technologies and health products for international medical cannabis markets. The company’s Gelpell® microgel capsule is the only known cannabis-based product on the market with a pharmaceutical grade Good Manufacturing Practices (GMP) designation. Satipharm’s tablets have been sold across various countries in Europe and have also entered the Australian market, as they are now available to prescribed users. The company has also submitted an Immigration Application to Health Canada so that the Satipharm tablets can be sold under the United Greeneries sales license.

As part of its initiative to become a vertically-integrated operation, Harvest One has expanded its product lines through the acquisition of Dream Water Global, a company that sells drinks and powders that promote relaxation and good sleep habits. Harvest One hopes to further develop the Dream Water brand by developing products with cannabidiol (CBD) and/or hemp that can be sold within regulated markets.

Company Highlights

  • Shareholders have significant exposure to both the medical and recreational cannabis markets, in Canada and globally, through three distinct brands:
    • United Greeneries, a ACMPR LP, is Harvest One’s horticultural arm and recreational brand, which has launched its retail platform for two brands.
    • Satipharm, specializing in the development and manufacturing on cannabis-based health products, in Harvest One’s medical and health brand.
    • Dream Water, the #1 selling natural, 2.5 oz, 0-calorie, liquid sleep shot.
  • Growth strategy includes expanding current production capacity and negotiating potential acquisitions.
  • Currently in negotiations with several provinces for supply agreements for the recreational market.
  • The Duncan Facility: current production capacity of ~1,000 kg/year.
  • Three expansion plans underway to deliver 20,000kg+ production capacvity by the end of 2018.
  • Still has over $60m in the bank following the Dream Water acquisition
  • 398-acre plot of land acquired for potential outdoor growing operation
  • Satipharm is expanding sales across the EU and in Australia as well as preparing for its cannabis-based Gelpell® microgel capsules to be imported into Canada.
  • Significant insider holding of 30 percent of shares

United Greeneries: Positioned for Growth in the Recreational Markets

United Greeneries owns and operates a production facility in Duncan on Vancouver Island in British Columbia. It is also currently developing another two sites, one in Lucky Lake Saskatchewan and a second facility in BC.

Duncan Facility

The Duncan Facility is a licensed medical cannabis producer with a current production capacity of 1,000 kilograms per year. The 16,000-square foot facility houses an automated high-tech growing system and a full in-house biochemical QA/QC Lab. United Greeneries was granted a Seed Import Permit in November 2016.

United Greeneries commenced production at Duncan in December 2016 and is cultivating 31 distinct commercial varieties of cannabis.

Expansion plans for the facility include doubling the size of the building, including a 16,000-square foot propagation facility and advanced extraction capabilities. The new square footage will also include an R&D laboratory as well as packaging and processing capabilities.

Lucky Lake Facility

United Greeneries’ Lucky Lake Facility advancing through the final stages of the ACMPR licensing application process. Located in Lucky Lake, Saskatchewan, the modern 62,000-square foot agricultural facility sits on over 18 acres of land and has a potential production capacity of 12,000+ kilograms per year. The facility is also supported by transportation access and ample water and power supplies.

Outdoor Growing Strategy

In December 2017, Harvest One announced their outdoor growing strategy for premium cannabis flowers. For this purpose, the company has acquired a 398-acre agricultural land package in British Columbia, in an area with the ideal climate conditions during the vegetative period of cannabis. In anticipation of regulatory changes that could allow for outdoor cultivation, United Greeneries has begun the procurement of outdoor growing varieties and has imported and phenotyped long-flowering Sativa and high-CBD varieties that the company believes will be attractive to consumers.

As part of this approach, which would initially see the use of 140 acres of row-style cultivation, the Harvest One has engaged advisors and experienced outdoor growing experts from Europe and California. They have outlined that the property could see a potential harvest of up to 50,000 kilograms by Q3 2019.

Outdoor growing is still not permitted under the ACMPR, but the company has pursued this initiative following a consultation with Federal Government officials in November 2017.

As such, the company believes it is well positioned to execute on its expansion plans as all capital and operating costs for the next two years have been covered by the company’s most recent financing. The company is fully focused on executing on all their business units and is evaluating strategic investments with the goal of providing shareholder value as the global cannabis market matures.

Satipharm: Cannabis-based Health Products for Global Markets

Developing cutting-edge technology and pharmaceutical-grade cannabis products for the medical and health-based cannabis markets.

Satipharm believes commercialization of its signature Gelpell® technology for cannabinoid products will transform the company into a global leader in the medical and health-based cannabis industry. The Gelpell® delivery technology helps address bioavailability and consistency issues associated with the delivery of orally-ingested cannabis-based products. Production of 10mg and 50mg Gelpell® microgel capsules began in May 2015 and since then, the company has also obtained the Pharmaceutical Central Numbers (PZN codes) for these. Satipharm capsules are currently sold in 12 EU countries, where the tablets are available online, on Amazon, in mail order pharmacies and in brick-and-mortar establishments. Currently, Satipharm is the only company in Europe that has GMP-grade nutraceutical CBD products.

The Satipharm tablets have also been made available to prescribed users in Australia, following a September 2017 final approval of compliance. The company has also submitted an import application to Health Canada so that Satipharm tablets can be sold under United Greeneries’ ACMPR license.

Satipharm is dedicated to growing its portfolio of delivery technology IP with further expansion plans targeting introduction of other formulations including THC.

Clinical Trials

As part of an agreement in which Satipharm has sublicensed the pharmaceutical application of the Gelpell® process to PhytoTech Therapeutics, PhytoTech has completed to phases of clinical trials on the product. The first, tested on 14 patients, demonstrated the safety and tolerability of Satipharm alongside a lack of significant side effects. It also showed a perfect proportionality between the company’s CBD 10 milligrams and CBD 100 milligrams products. The results of this phase of testing were published in an international medical journal.

The second phase of clinical trials evaluated the safety, tolerability and efficacy of oral administration of Satipharm CBD capsules as an adjunctive treatment to 15 children (ages 2-15) with treatment-resistant epilepsy. To date, Harvest One has released the results for its first ten patients. These showed that Satipharm CBD capsules reduced monthly seizure frequency when added to the patient’s existing medications and that the drug’s safety profile remained consistent to the Phase 1 results. The median reduction of seizures was of 79.5 percent in the 12-week treatment period.

Dream Water

In May 2018, Harvest One completed the acquisition of Dream Water Products Canada Inc. and Sarpes Beverages LLC (Dream Water USA), which have jointly become Dream Water Global. Dream Water sells beverages and powders that promote relaxation and support restful sleep across North America in over 30,000 outlets.

Harvest One’s strategy for the company is to scale its existing e-commerce and retail operations and launch Dream Water’s product innovation pipeline. The company also plans to develop the brand within the cannabis space, producing product lines that include cannabidiol (CBD) or full-spectrum hemp and can be sold under federally regulated markets.

Market Outlook for Canadian Medical and Recreational Cannabis Sectors

Forecast annual sales of combined markets expected to reach between $8 billion to $9 billion per year by 2024.

The Canadian market for medical cannabis is growing exponentially with an 1,544-percent increase in Canadians registered under the ACMPR from mid-2014 to a total of 130,000 as of December 31, 2016, reports The Canadian Press. Industry analysts are forecasting annual sales of medical cannabis to reach an estimated $3.0 billion by 2024.

However, the biggest driver of stock prices for Canadian cannabis LPs is the expected legalization of marijuana for recreational use, which will be launched in October 2018. Further share value is expected to be driven by a looming supply shortage as current LP production capacity is a mere fraction of expected 2024 demand levels.

Anticipated Catalysts

As Harvest One continues to advance its cultivation and health product initiatives, the company has established a set of goals and catalysts that will take place over the course of 2018. This includes the continued development of Satipharm’s international sales network and the import of Satipharm capsules into Canada. Harvest One will also continue its expansion and retrofitting activities for its expansion sites, expanding the company’s annual production capacity in anticipation of the start of recreational sales in Canada.

The newly acquired Dream Water provides incredible synergies and product development capabilities as legislation changes both in Canada and the US.

Additionally, the company will continue to develop its outdoor growing strategy as it expects the possibility of regulation that might allow for this form of production under ACMPR.


Grant Froese—CEO 

Grant Froese joins Harvest One following a 38-year career with Canadian retail giant Loblaw Companies Limited (TSE:L), last serving as Chief Operating Officer. During his career at Loblaw, Grant led operations and merchandising at all levels and has had oversight of information technology, supply chain, digital/e-commerce businesses, marketing, and Loblaw’s industry-leading control brands. Mr. Froese has also been appointed to the Board of Directors.

Lisa Dea — CFO

Lisa Dea has over 20 years of experience in the finance, securities and accounting fields. She has been the CFO of several TSX and TSXV listed companies where she was responsible for corporate strategy, all aspects of finance and legal, debt and capital market activities, internal and external public reporting, financial controls, processes and corporate governance. She has been instrumental in helping several companies grow from the development stage to large-scale commercial operations. Prior to her time in industry, she spent eleven years at Deloitte & Touche LLP, achieving the position of Senior Manager. She obtained her Chartered Accountants designation in 1997 and also holds a BComm from the University of British Columbia.

Nick Maltchev — CTO and Interim COO

Nick Maltchev is a global executive with a passion for results and building great teams. He brings a mix of strategic thinking and deep technical knowledge and over 25 years of technology experience. He has been involved with the industry since 2004 and was an integral part of the Advanced Nutrients management team over a period of 12 years, holding several positions including information technology manager, COO and general manager. He holds a BBA degree, as well as other designations in project management, cybersecurity and computer science. He is also currently in the process of finishing an MBA in management information systems.

Frank Holler — Chairman of the Board

Frank Holler is President and CEO of Ponderosa Capital Inc., and is an expert in biotechnology, investment banking and venture capital. He previously served as CEO and Partner of Lions Capital Corp., fund manager for BC Advantage Funds and the Lions Funds; as President and CEO of Xenon Pharmaceuticals Inc., a private genomics-based drug development company; as President and CEO of ID Biomedical Corporation, a vaccine development company sold to GlaxoSmithKline plc; and as a founding director of Angiotech Pharmaceuticals, a TSX/ NASDAQ listed medical device company. Before working in biotechnology and healthcare, Mr. Holler was an Investment Banker with Merrill Lynch Canada and Wood Gundy Inc. (now CIBC World Markets).

Jonathon Hartshorn — CEO Satipharm

Jonathan holds a degree in Pharmacology and Physiology and is a Fellow of the Institute of Chartered Accountants. He has over 15 years of experience in the Life Sciences arena, including Discovery, Development, Clinical Trials and OTC and grocery retail experience, as well as transaction experience including M&A and financings. He has held key leadership positions in Pfizer Consumer Healthcare Ireland, McNeil Healthcare and Venn Life Sciences Plc.

Ann Gallery —Senior Vice President of Corporate Communications

Ms. Gallery is responsible for managing internal and external communications at Harvest One and its wholly-owned subsidiaries United Greeneries (cultivation), Satipharm (medical and nutraceutical), and Dream Water Global (consumer). Before joining Harvest One, Ms. Gallery worked in corporate communications at RBC and Rogers, led national account teams at National Public Relations and Optimum Public Relations, launched a workplace wellness company, and founded a national PR agency in 2001 that serviced global brands including Campbell’s, Heinz, Birks and Revlon.

Gord Davey—Senior Vice President of Global Sales

Mr. Davey comes to Harvest One with more than 20 years in the consumer-packaged goods industry, successfully leading teams and launches at Coca-Cola, Red Bull and Puratos. He will help accelerate the growth and development of Harvest One brands in Canada and throughout the world.

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