MMJ is the largest shareholder with 26% of Harvest One, which is one of the largest investments within the MMJ cannabis and hemp portfolio.
The loan to HVT bears interest at a rate of 15% per annum and the principal and accrued interest on the loan is payable in arrears within 60 days of the issue date, subject to certain exceptions.
Harvest One is set to grant MMJ a security interest in all current and after-acquired property of HVT and its subsidiaries.
HVT will use the proceeds from the loan for general corporate purposes.
“Strengths in brand development and distribution”
Harvest One chief executive officer Grant Froese said: “This short-term loan provides us with the flexibility needed to continue the implementation of our strategic plan while continuing to evaluate longer-term financing options.
“There is momentum across our business as we continue to focus on our strengths in brand development and distribution.
“We see significant opportunities for growth as we leverage our extensive brand portfolio as cannabis 2.0 takes hold in Canada.”
Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world.
The company is focused on building and supporting its existing line of value-added infused products which includes the manufacturing of its Satipharm Gelpell® capsules in Canada, cannabis-infused Dream Water and LivRelief™ products, vape pens and other derivative offerings.