Harvest One Cannabis has entered into a secured loan agreement with MMJ Group Holdings for a loan in the amount of $2 million, issued on January 13, 2020. "MMJ is the largest shareholder of the Company, owning approximately 25.8% of the Company’s issued and outstanding common shares," the team with the company explains.
“This short-term loan provides us with the flexibility needed to continue the implementation of our enhanced strategic plan while continuing to evaluate longer-term financing options,” said Grant Froese, CEO of Harvest One. “There is momentum across our business as we continue to focus on our strengths in brand development and distribution. We see significant opportunities for growth as we leverage our extensive brand portfolio as Cannabis 2.0 takes hold in Canada."
"A review of the Company’s non-core assets is ongoing as it seeks to reduce its overall exposure to pure cultivation and redirect its efforts and resources on brand development, production and distribution. As previously disclosed, the Company believes the sale of these non-core assets will provide cash proceeds to support the expansion of the Company’s core business lines and operational strengths."
"The Loan bears interest at a rate of 15% per annum and the principal and accrued interest on the Loan is payable in arrears within 60 days of the Issue Date, subject to certain exceptions," they further explain. "Harvest One will grant MMJ a security interest in all current and after acquired property of the Company and certain of its subsidiaries. The Company will use the proceeds from the Loan for general corporate purposes including the development and rollout of the Company’s Cannabis 2.0 product line."
For more information:
Harvest One
Suite 2650
1066 West Hastings St.
Vancouver, BC
V6E 3X1
info@harvestone.com
harvestone.com