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
May 14, 2019 – Vancouver, B.C. – 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. The company 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. The company’s 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 the company’s website at www.geyserbrands.com.
On Behalf of the Board of Directors
Director and CEO