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HAVN Life Sciences Inc
Symbol HAVN
Shares Issued 90,335,741
Close 2021-04-08 C$ 0.75
Recent Sedar Documents

HAVN Life Sciences completes GCO Packaging acquisition

2021-04-08 10:13 ET - News Release

Mr. Tim Moore reports

HAVN LIFE COMPLETES ACQUISITION OF STRATEGIC MANUFACTURING & PACKAGING FACILITY FOR ITS RETAIL DIVISION

Further to its news release dated Jan. 26, 2021, HAVN Life Sciences Inc. has completed the acquisition of GCO Packaging and Manufacturing Ltd., acquiring 100 per cent of the outstanding shares of GCO in exchange for an aggregate of six million common shares of HAVN Life Sciences. GCO operates a large-scale manufacturing, packaging and distribution facility.

The acquisition is expected to enhance three key elements to HAVN Life Sciences's retail strategy:

  • Facilitate expanded product portfolio with strong revenue generation potential;
  • Expand ability to enter new natural health product (NHP) categories;
  • Reduce third party manufacturing burden.

HAVN Life Sciences chief executive officer Tim Moore noted: "Acquisition of this facility represents a pivotal step forward for us as we ramp up production of the seven natural health products we're launching this spring in retailers such as Nesters Market. Our team continues to work towards formulating and developing new and innovative products to bring to market. Looking to the future, it will also enable us to produce a range of new products, from functional teas to other natural health product formulations."

With over 16,000 square feet of space, the facility features a large warehouse with multilevel inventory racking, fully equipped and functioning production and packaging rooms, and modern, fully furnished boardroom, laboratory and offices. The facility currently holds USDA (U.S. Department of Agriculture) organic, Canadian organic and kosher certifications and includes a large loading area for ease of delivery vehicle access. The 2.11-acre free-standing facility is strategically located in the Lower Mainland near several key transportation hubs, providing an excellent access point for the distribution of HAVN Life Sciences' forthcoming retail product line.

Transaction details

The company notes that 1,214,954 of the consideration shares will be issued to a creditor of GCO in connection with the settlement of certain outstanding indebtedness. The debt settlement shares are subject to resale restrictions, which, in respect of one-half of such debt settlement shares, expire in four months and which, in respect of the remaining debt settlement shares, expire in five months.

Release and delivery of the consideration shares to the vendors are subject to the terms and conditions contained in the share purchase agreement between the company and the vendors, including an escrow arrangement whereby one-sixth of such consideration shares will be released to the vendors every three months following closing, commencing three months from the closing date.

The completion of the acquisition triggered the vesting of an aggregate of nine million outstanding performance warrants, all of which have been exercised, resulting in the issuance of nine million common shares of the company to the holders thereof. One-half of the performance warrant shares are subject to resale restrictions, which, in respect of 50 per cent of such performance warrant shares, expire in 45 days and which, in respect of the remaining 50 per cent of such performance warrant shares, expire in 90 days.

About HAVN Life Sciences Inc.

HAVN Life Sciences is a biotechnology company on a mission to unlock human potential using evidence-informed research. The company is focused on standardized, quality-controlled extraction of psychoactive compounds from plants and fungi and the development of natural health care products from non-regulated compounds.

We seek Safe Harbor.

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