The acquisition adds Delivera’s LivRelief line of natural topical creams to Harvest One's brand portfolio
() (OTCMKTS:HRVOF) has closed its acquisition of specialty biotechnology company Delivera Corp, the company announced Wednesday.
The acquisition strengthens Harvest One’s health and wellness arm by adding Delivera’s LivRelief product to its brand portfolio.
LivRelief is a line of natural topical creams with Delivera’s proprietary transdermal delivery system platform for conditions such as joint and muscle pain, nerve pain, varicose veins, wound healing, and sports performance.
READ: Harvest One says transaction with Delivra expected to close shortly as shareholders approve move
Toronto-based Harvest One said that Delivera will immediately complement the cannabis company’s distribution network of over 30,000 stores across North America, including major retailers like , Loblaws, Walmart and Rexall.
"We are delighted to close this transaction and welcome Delivra to the Harvest One team" said Grant Froese, CEO of Harvest One.
"The addition of the LivRelief brand to our existing product portfolio emphasizes our goal of becoming a global leader in the health, wellness, and self-care sector,” Froese said in a statement.
“There are significant synergies between both organizations and we expect an expeditious integration.”
Froese said that Harvest One will look to expand the development of Delivra's products globally with an expanded reach of the current formulation and new products, including cannabinoid infused products in legal jurisdictions.
Transaction terms
Harvest One's health and wellness strategy and distribution capabilities will ensure that LivRelief will reach more people in Canada and beyond, said Dr Joseph Gabriele, CEO and chief scientific officer of Delivera.
Under the terms of the transaction, Delivera shareholders each receive 0.595 of a share of Harveset One for each existing Delivera share held.
The biotechnology company becomes a wholly owned subsidiary of Harvest One. Delivera shares will delist from the TSX Venture Exchange on or before July 4.
Harvest One also said that Dr Gabriele will join the board of directors of the cannabis company.
Harvest One serves as an umbrella over three wholly-owned subsidiaries: United Greeneries, which is a licensed producer; Satipharm, which develops cannabis-based health products; and Dream Water, which offers consumer sleep aids.
Shares of Harvest One slipped 4% in Toronto to C$0.72 and 2% on OTC markets to US$0.56 on Wednesday morning.
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