August 21, 2020 – Vancouver, BC – Geyser Brands Inc. (TSX-V: GYSR)(“Geyser Brands” or the “Company”) has elected to exercise its call option pursuant to the terms of an Investment Agreement dated April 17, 2020, as amended on June 3, 2020 (collectively, the “Investment Agreement”), between the Company and Hanma Investment Group Co. Ltd. (“HMI”) in order to repurchase the 3,500,000 Class A Common shares in the capital of Geyser Management Inc. (“GMI”). Pursuant to the terms of the Investment Agreement, the Company is returning the fully unused trade credit note dated June 3, 2020 in the sum of $2,000,000 Canadian dollars as full and final payment for the repurchase.
As a result of the repurchase, HMI will no longer be a shareholder of GMI, which will revert back to being a wholly owned subsidiary of the Company.
“Although Geyser remains optimistic about the future of the Asian cannabis market, the company has, for the moment, decided to focus on strategic growth of its Canadian operations,” stated Andrew Harris, CEO.
ABOUT GEYSER BRANDS
Geyser Brands Inc. builds brands in the health and wellness space that focus on the benefits of cannabis to improve lives. Its Health Canada approved Licensed Production facility has cultivation, processing, research and sales licenses, allowing it to deliver proprietary delivery technologies, formulations, research partnerships and traceability in supply and distribution. Through its pet-based platform, GMI has positioned itself as potentially the only Licensed Cannabis Producer dedicated to the global pet industry. Geyser continues to own and exploit its non-pet brands, including Apothecary Naturals, Apothecary Ink and STOND which providing consumers with hemp and plant based natural products.
For more information, visit the company’s website at www.geyserbrands.com.
On Behalf of the Board of Directors
Director and CEO
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This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Forward‐looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the marijuana industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information relating to Geyser is available at www.sedar.com.