Geyser Brands Inc. (TSXV: GYSR) is a Health Canada-approved Licensed Producer based in Vancouver, BC, actively engaged in building a leading cannabis healthcare company with a diverse portfolio of products and brands in the lucrative health & wellness industry, including a range of products to promote pet health and wellness.
Solace Acquisition Provides Established Brands
To that end, the company announced the intended acquisition of Solace Management Group Inc. and its portfolio of brands, ranging from the medical and adult recreational cannabis markets to pet health & wellness, including Apawthecary, Canada’s leading hemp-infused pet brand. Solace’s goal is to set the bar for consumer healthcare using cannabis-infused products emphasizing quality, effectiveness, reliability, and convenience. Geyser Brands and Solace have entered into an LOI as of February 2019, and are expected to close the transaction in Q2 2019.
Solace was initially inspired by Gabriele Jerousek, co-founder of Solace and an advocate for the benefits of medical cannabis who grew up helping her grandmother heal people with custom formulated tinctures, healing herbs, and topicals in her Viennese apothecary. Today, she is the CEO of Solace’s subsidiary Apothecary Naturals
Under the Solace umbrella, the Apawthecary brand alone produces human-grade, all-natural hemp-based pet treats, salves, and oral drops currently sold in over 400 pet stores and 100 veterinary clinics across Canada. Solace has also developed WildTails, the first freeze-dried pet food infused with hemp and, where legal, CBD. This new brand addresses pet wellness with treats, kibble, and food for dogs and cats, and is scheduled for release in Canada, the US, UK, and Japan later this year. Pet health & wellness is a $132 billion dollar industry, and is projected to be among the fastest growing sectors of the red hot hemp and CBD market, with products aimed at conditions such as anxiety and inflammation leading the pet health segment.
Apothecary Naturals is a line of 100% natural hemp-based topical products, pain creams, cosmetics, organic soaps, lip balms, and men’s grooming and self-care products, handmade in small batches without chemicals, fillers, or hidden ingredients. Apothecary Ink is a line of all-natural hemp-based tattoo aftercare products.
Apothecary Labs is Solace’s research and development arm, engaged in technology and formulation development for beverages, topicals, cosmetics, and other cannabis and hemp-infused nutraceutical products. Apothecary’s caplets, tinctures, and buccal sprays are condition-based, and formulated, produced, and tested by its team of scientists and researchers.
The Solace acquisition is expected to usher in the foundation of a diverse domestic and international cannabis-powered consumer healthcare brand portfolio with equity in medical, pet, cosmeceutical, and nutraceutical markets. Net revenue for Solace’s fiscal year ended December 31, 2018 was just under $2 million, reflecting a 120% increase over net revenue for the previous year, due in large part to distribution agreements throughout 2018.
Brandeavour to Maximize Brand Direction
Geyser intends to take Solace’s brands global through retail and digital direct-to-consumer sales, launching its hemp-infused cannabis brands and products in the U.S., EU, and Asia, and its CBD-infused line of products in jurisdictions where CBD is legal.
To prepare for this, the company recently announced the appointment of London-based Brandeavour to provide strategic branding and brand direction to Geyser Brands and its subsidiaries. Anthony Webb, brand expert/strategist, and founder of Brandeavour, will serve as the company’s consultant of record for strategic branding and creative counsel. Webb has worked with some of the world’s leading brands, and consulted for international bodies such as the Danish Embassy, the Barbados High Commission, Jamaican High Commission, and the Commonwealth Secretariat. Brandeavour will work alongside Geyser Brands’ strategic partner, GetFresh Ventures, to provide data-driven digital growth services and develop new channels to market Geyser Brands.
Commenting on the appointment, Geyser Brands CEO Andreas Thatcher said, “The Geyser Brands team is thrilled to have Anthony on board and working to support our business and brand growth. Anthony is an old friend and confidant, and his global experience with consumers across all industries, from luxury products and retail to sports and entertainment, gives him a perspective into consumer needs and preferences that are rivaled by few in the industry. Combined with the data-driven digital strategy frameworks supported by GetFresh Ventures, we are perfectly positioned to develop a compelling, highly differentiated, and consumer-focused approach to brand growth and development.”
The company is currently negotiating non-binding letters of intent with a number of U.S. brands seeking Canadian distribution, and negotiating joint ventures with entities in China and Japan for the commercialization of its hemp products. Stay tuned for updates.
Geyser Celebrates First Harvest, Champions NanoFusion Technology
The company announced at the end of March that its 7,000 sq ft. licensed facility in Port Coquitlam, BC has completed the first harvest, and has been certified compliant with Health Canada standards, moving it a step closer to receiving its processing and sales license. The company is also developing its manufacturing and R&D capabilities at the facility to provide in-house formulated products for future brands and Geyser’s white label products. The harvest provides the first revenue from the cultivation license, while expanded licensing will allow Geyser to manufacture CBD extracts and bring its extract-infused products to market.
The lessons learned during the first harvest are expected to help produce an even bigger yield from successive crops, and the company will continue to invest in the development of unique, high-quality proprietary strains and technologies to address health conditions such as chronic pain and inflammation, digestive issues, insomnia, and other common ailments.
Geyser Brands’ trademarked Nanofusion technology, for example (which goes into all of its products) are nano-emulsions that encapsulate oil molecules to solve the problem of CBD’s insolubility, enabling more effective, accurate dosing. The efficacy of most hemp products is restricted by the insoluble nature of the molecules, which prevents most of the product from permeating the skin or entering the body system. Nanofusion increases shelf stability and improves bioavailability, skin permeation, while faster onsets and slow releases means consumers require lower doses to achieve optimal health & wellness benefits.
Geyser Brands offers a ground floor opportunity with a company on the cusp of big developments, the potential for rapid growth, and a detailed plan for expansion and the promotion of its diverse offering.
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