Due to increased demand and sales projections,
Geyser Brands' acquisition target (Solace Management Group) moves
into upgraded production facility
VANCOUVER, May 14, 2019 /CNW/ - Geyser Brands Inc.
(TSXV:GYSR) ("Geyser Brands" or the "Company") is pleased
to announce that its acquisition target, Solace Management Group
Inc. ("Solace"), has completed the build out of its new
production and manufacturing facility located in Coquitlam, BC.
Built to Good Manufacturing Practices (GMP), the new 7500 sq.
ft. facility will increase production capacity by up to
10-fold. Solace's product portfolio is currently comprised of
23 products and 57 SKU's of both pet and consumer healthcare goods.
The new facility will also allow Solace to develop and license new
products that are either ready for production or are in various
stages of development.
Solace has upgraded all of its manufacturing capacity to semi or
fully automate its processes. New equipment includes an industrial
oven, advanced blending and mixing systems, rotary depositing,
large volume kettle blending, tincture bottling system and
vertical-form-fill product packaging. These advancements will allow
Solace to maximize current demands for its own products and
brands.
Solace's research and development team will also be relocated to
the new facility, providing them with access to needed equipment
and allowing them to work closely on the production of new SKUs. A
key component to growth and relevance in the consumer-packaged
goods sector is constant innovation and development of products
that consumers need. By combining Solace's own expertise and
advanced manufacturing technology with Geyser Brands, Solace and
Geyser Brands will endeavour to meet the growing consumers' needs
for healthy and relevant products.
In 2018, the Global Wellness Institute estimated that
the global wellness economy was a $4.2
trillion market, growing 12.8% from 2015 to 2017.
Geyser Brands and Solace hope to tap into this growth on their way
to becoming leaders in the global consumer healthcare market.
As previously announced, Geyser Brands has signed a non-binding
Letter of Intent to acquire Solace Management Group Inc. for an
aggregate purchase price of $3.9
million, consisting of $400,000 cash and 5,833,333 common shares at
a deemed price of $0.60 per
share. The proposed acquisition of Solace Management
will not be an "arm's length transaction" as defined under the
rules and policies of the TSX Venture Exchange. Closing of
the Solace acquisition remains subject to the entry by the parties
into a binding definitive agreement, the satisfactory completion of
due diligence investigations, and the receipt of all necessary
regulatory approvals, including the approval of the TSX Venture
Exchange. Solace and Geyser Brands anticipate signing a
binding definitive agreement by the end of next week, following
which Geyser Brands will seek TSX Venture Exchange approval.
"The new production facility is definitely a milestone for
Solace. The acquisition of Solace will provide us with a great head
start as we seek to establish ourselves as a leading provider of
health-focused hemp and CBD products. We have some new amazing
products in the queue and being able to fulfill demand is key."
said Andreas Thatcher, CEO of Geyser
Brands.
ABOUT GEYSER BRANDS
Geyser Brands Inc. builds health-based hemp CBD consumer
products in the Nutraceutical, Cosmetics, Food & Beverage and
Pet sectors world-wide. R&D investment in NanoFusion, a
proprietary all-natural nanotechnology, delivers topical, cream,
beverages and baked goods, oil, and tincture formulations with
superior bio-availability and water-solubility.
Geyser Brands is a Health Canada approved Licensed Producer
("LP") in Port Coquitlam, B.C.
that holds a cultivation license and is anticipating its processing
and sales licenses. Geyser Brands is exclusively focusing on
leveraging these assets to provide the regulatory infrastructure
for its global brands and distribution strategy, acquiring hemp-
and plant-based brands and infusing them with new CBD product lines
in jurisdictions where the therapeutic ingredient is legal. Geyser
Brands' proprietary NanoFusion technology surrounds oils and solves
for the insolubility of CBD. Geyser Brands will utilize its 7,000
sq. ft. licensed facility in British
Columbia for the manufacturing and distribution of its hemp
and CBD-based products internationally.
For more information, visit Geyser Brands' website
at www.geyserbrands.com.
On Behalf of the Board of Directors
Andreas
Thatcher
Director and CEO
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CAUTIONARY AND FORWARD-LOOKING STATEMENTS
This news release contains forward‐looking statements and
forward‐looking information within the meaning of applicable
securities laws. These statements relate to future events or future
performance. All statements other than statements of historical
fact may be forward‐looking statements or information.
Forward‐looking statements and information are often, but not
always, identified by the use of words such as "appear", "seek",
"anticipate", "plan", "continue", "estimate", "approximate",
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"targeting", "intend", "could", "might", "should", "believe",
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Forward-looking statements and information are provided for the
purpose of providing information about the current expectations and
plans of management of the Company relating to the future. Readers
are cautioned that reliance on such statements and information may
not be appropriate for other purposes, such as making investment
decisions. Since forward‐looking statements and information address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, the risks
associated with the marijuana industry in general such as
operational risks in growing; competition; incorrect assessment of
the value and potential benefits of various transactions; ability
to access sufficient capital from internal and external sources;
failure to obtain required regulatory and other approvals and
changes in legislation, including but not limited to tax laws and
government regulations. In addition, the proposed acquisition of
Solace Management Group Inc. remains subject to the execution of a
binding definitive agreement and other conditions, including the
approval of the TSX Venture Exchange. There is no assurance
that the proposed acquisition of Solace will be completed as
described in this news release, or at all. Accordingly,
readers should not place undue reliance on the forward‐looking
statements, timelines and information contained in this news
release. Readers are cautioned that the foregoing list of factors
is not exhaustive.
SOURCE Geyser Brands Inc.