It was announced today that Harvest One Cannabis (TSXV:HVT, OTCMKTS: HRVOF) will be acquiring Delivra Corp (TSXV: DVA) in an all stock transaction valued at roughly $19 million Canadian. Under the terms of the agreement, Delivra shareholders are to receive 0.595 Harvest One shares for each Delivra share currently held. The agreement is set to go to a vote in May.
Delivra Corp is a health and wellness centred company with products, most notably its flagship LivRelief brand, on major retailer shelves across Canada. Most notably these retailers include Shoppers Drug Mart, Loblaws, and Walmart, which will prove advantageous for Harvest One’s Dream Water line of products as well as it’s Satipharm CBD capsules.
Commenting on this the CEO of Harvest One, Grant Froese, stated, “The acquisition of Delivra by Harvest One puts further emphasis on the Harvest One goal of being a leading house of brands in the global health, wellness, and self-care sector. The addition of LivRelief™, which is already on retail shelves across Canada, will give Harvest One a head start for cannabis-infused products in Canada and beyond and is a great addition to our existing brands in this space.”
The Deep Dive has long addressed Delivra as an undervalued play in the CBD and THC wellness products category, providing coverage on the company as far back as December 2017. The company has been involved in CBD infused product formulations for a number of years now and has even gone so far as to have partnered with Canopy Growth in the past for the development of cannabinoid based topical creams.
The transaction effectively values each Delivra share at a deemed price of $0.39. Although this provides a small premium of $0.02 from market close on Friday, the purchase price is based on the time at which Delivra began looking for a strategic partner. This date being September 28, 2018, it provides a 27% premium to Delivra shareholders.
Upon closing of the transaction, all directors of Delivra are set to resign from their position. The current CEO of Delivra, Dr Joseph Gabriele, will be the sole member of management placed on the Harvest One board of directors.
Delivra Corp posted a net loss of $1,691,357 on revenues of $3,976,861 in the nine months ended September 30, 2018.
No company listed in this briefing is a client of The Deep Dive, nor does the author own any equities related to the companies covered. Provided for entertainment purposes only, not to be taken as investment advice. Always consult a professional before investing in an equity.
