Geyser Brands gets investment from HMI
GEYSER BRANDS INC. announced the establishment of a strategic partnership with the Hanma Investment Group(HMI) and signed an investment agreement
On April 17, 2020, Geyser Brands Inc. (TSX code: GYSR) has reached a strategic investment agreement with China ’s largest hemp company, Hanma Investment Group (hereinafter referred to as “HMI”), becoming a strategic partner.
HMI is China’s largest comprehensive industrial cannabis investment group, and is also an industry leader and innovator in China and the world. HMI is one of the world’s largest producers of industrial hemp CBD extraction, has industry-leading patented technology, and has established a strong influence in many downstream markets of the cannabis industry.
“This agreement is an opportunity to consolidate our relationship with a leading global hemp company. For Geyser, this is a huge opportunity to work with top companies to jointly open the world’s largest consumer market for our products. Through HMI as a strategic partner, we can establish a complete supply chain and distribution channels to build our pet platform into a leading brand to the global market. “said CEO of Geyser Brands, Andreas Thatcher.
HMI will become a strategic shareholder of Geyser Management Inc. (hereinafter referred to as “GMI”), which holds 35% of its outstanding shares. 0957102 B.C. Ltd., a wholly-owned subsidiary of GMI, is one of the few Canadian full-license cannabis companies approved by Health Canada.
GMI will combine Apawthecary Pets, a cannabis pet health brand of another subsidiary of Solace Management Group, with legal cannabis and related product development capabilities to create a unique cannabis-based pet product platform in the world. Deliver high-quality cannabis pet-related products to the legal cannabis market worldwide.
“The agreement is based on the mutual promotion of business in Greater China and Canada, including the expansion of the distribution channels of Apawthecary Pets pet products in the Greater China market and the import of hemp group CBD extracts in Canada.” Said Mr. Tan Xin, President of HMI.
“Our global platform is focused on building a complete industrial chain from breeding, planting, processing, R & D, production to distribution. At present, the cannabis industry has gradually evolved from competition for license resources to competition in subdivided application fields. We believe that pet health care, pet medical and pet breeding market will be an ideal development direction. Taking China as an example, the number of pets in China has exceeded 130 million in 2019, ranking second in the world after the United States, but the number of pets per capita is only 0.09 / People, this shows the huge potential of the pet market. We are very happy to take advantage of the growing advantages of the Chinese market and our foundation in the field of biopharmaceuticals to cooperate with Geyser to create a global platform for GMI and to show our passion and love for small animals turning into a great opportunity ”
According to the terms of the agreement, the HMI appointed Geyser as its exclusive agent for cannabinoid raw materials in Canada, directly or indirectly acquiring, purchasing or exporting various cannabis, industrial cannabis and any extracts including cannabinoids from Canada. As part of the transaction, the HMI will also provide Geyser with the cannabinoid raw materials needed for the end product, Cannabidiol (CBD) worth 2 million Canadian dollars, including CBD crystals, full-spectrum CBD oil, water-soluble CBD and other designated Cannabinoids.