April 17, 2020 – Vancouver, BC – Geyser Brands Inc. (TSX-V: GYSR) (“Geyser Brands” or the “Company”) is pleased to announce that it has reached a strategic partnership and investment agreement (“Agreement”) with the largest hemp company in China, Hanma Investment Group (“HMI”) and introduce HMI as a strategic partner.
HMI is China’s largest comprehensive hemp conglomerate and an industry leader and innovator in China and globally. It is one of the largest producers of hemp-extracted CBD in the world, has industry leading patented technology, and has established a strong presence in numerous downstream areas of cannabis industry.
HMI will become a strategic shareholder of the Geyser subsidiary, Geyser Management Inc. (“GMI”), by acquiring from the Company 35% of the outstanding shares. GMI currently, through its wholly-owned affiliate 0957102 B.C. Ltd., houses a Health Canada approved Licensed Producer (Standard Cultivation, Processing, Sale for Medical Purpose, and Research), which is one of the few fully-licensed producers in Canada. Together with its subsidiary, Solace Management Group, housing pet brand Apawthecary Pets, and manufacturing facilities, GMI is believed to be the world’s only pet-focused platform that combines cannabis-led wellness pet brands with the ability to legally research, develop, and manufacture cannabis products for legal markets world-wide.
This agreement builds on the relationship and mutual promotion of the businesses in the Greater China and Canada, which includes extending distribution channels for Apawthecary Pets products in Greater China, and importation of HMI’s CBD extractions into the Canadian market.
Under the terms of the agreement, HMI appoints Geyser as the exclusive agent of HMI for the sourcing, procurement or export, directly or indirectly, in or from Canada of all varieties of cannabis, all varieties of hemp and any extracts including cannabinoids. As part of the transaction, HMI will also provide Geyser with a two million Canadian dollar inventory of cannabidiol needed for end products, including CBD Isolate, Full Spectrum CBD oil, water soluble CBD, and specific Cannabinoids.
Tan Xin, President of HMI, said, “Our global platform is focused on building the entire industrial chain from breeding, planting, processing, R&D, production to distribution. The cannabis industry has also gradually developed from competition for license resources to competition in subdivided application fields. We believe that pet healthcare, pet treatment and pet fostering market will be an ideal direction. Take China as an example, the total number of pets in 2019 has exceeded 130 million, ranking second in the world after the United States, but the number of pets per capita is only 0.09 / person, which reflects the huge potential. We are pleased to use the advantages of the growing Chinese market and our foundation of biopharmaceuticals to work together with Geyser to create a global platform for GMI and turn our passion for our animal friends into a great opportunity.”
Andreas Thatcher, CEO of Geyser, commented, “This agreement is an opportunity to cement our developing relationship with a global leading cannabis company. For Geyser this is a blockbuster opportunity that will open up the biggest consumer market in the world to our products, with the top-tier company in that space. With HMI as a strategic partner, we can build supply chain and distribution channels that will propel our pet platform to a leading brand in the global market.”
The agreement is subject to corporate and exchange approvals.
Hanma Investment Group Co., Ltd. (HMI Group) is committed to promoting the industrial revolution of biomass to replace minerals and becoming the world leader in hemp comprehensive application industry. HMI Group is a leading company of Asian cannabis industry and enjoys great reputation. For years, HMI Group has made positive contribution to the vigorous development of industrial use and medical use of hemp in China and made great achievements in setting industry standards and norms. At present, HMI Group is the only legal investment company in China focusing on the whole industrial chain of industrial hemp and the direction of biopharmaceutical.
As a unicorn in the industry, HMI Group focuses on the whole industrial chain investment of industrial hemp, from breeding, planting, extraction, R&D to production and sales worldwide, covering areas of biopharmaceutical, food, health food, beauty and cosmetics, medical devices, textiles, new materials, etc. In the meantime, HMI Group keeps deepening the industry analysis and industry layout, actively developing technical and product iterations, doing research and implementing the “patent pool” strategy, strengthening the creation and application of intellectual property rights, establishing media information platform to expand the social influence of enterprise, building a global product sales network, steadily entering the global market.
ABOUT GEYSER BRANDS
Geyser Brands Inc. develops consumer product brands in the health and wellness sector that use hemp and CBD as a value-added ingredient. These involve next-generation formulas that focus on the mix of cannabinoids for specific conditions such as insomnia, anxiety and pain. Proprietary delivery technologies include all natural nano-technology, slow-release mechanisms and non-molecule degrading baking processes. In anticipation of coming edibles legislation, and with its Health Canada approved Licensed Production Facility, Geyser Brands has 15,000 square feet in two GMP facilities in Vancouver, BC.
For more information, visit the company’s website at www.geyserbrands.com.
On Behalf of the Board of Directors
Director and CEO