Solace Increases Production Capacity, Purchases New Equipment for Consumer Healthcare and Pet Wellness Production
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
THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
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", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
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.
Geyser Brands Inc., #330 - 321 Water Street, Vancouver, B.C., V6B 1B6, www.geyserbrands.com | [email protected]
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