Harvest One picks up Delivra in all-stock deal

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The cannabis producer is looking to expand its portfolio of lifestyle and wellness brands

Harvest One Cannabis, Inc, is expanding its library of subsidiaries. It announced this past Monday that it is going to acquire Delivra Corp, a specialty biotechnology company, in an all-stock deal that is being valued at $14.22 million.

Through the deal, Delivra shareholders will be issued 0.595 shares of Harvest One per share owned. This represents a real-money value of around $0.29 per share. Once the acquisition is complete, Delivra shareholders will own around 28.3 million of Harvest One stock, or approximately 13.4% of the company’s outstanding shares.

Delivra will become a fully-owned subsidiary of Harvest One. This will allow Harvest to expand its portfolio of lifestyle and wellness brands, which also includes United Greeneries, consumer-focused Dream Water and medical and nutraceutical company Satipharm.

Harvest is gaining the LivRelief brand of topicals and creams currently offered by Delivra. It will also have access to new distribution channels throughout Canada, as well as Delivra’s transdermal delivery system platform. That platform transfers pharmaceutical and natural molecules through the skin and is already licensed to pharmaceutical companies across the globe, including at more than 6,000 retail locations such as Walmart, Rexall, London Drugs and Shoppers Drug Mart.

The deal has yet to be finalized. It needs to be approved by the Ontario Superior Court of Justice, which has a number of conditions to be met, as well as a two-thirds vote by the shareholders of Delivra. That vote will be held during a special meeting this coming May and, if all goes well, the deal could be consummated before the end of the second quarter of this year.

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