Initial investment in DreamWater to deliver strong return for CGOC investors
Toronto, Ontario – May 29, 2018 – Today, Cannabis Growth Opportunity Corporation (CSE: CGOC) revealed that one of its initial investments in the cannabis sector, DreamWater Products Canada Inc. (DreamWater), has been successfully acquired by Harvest One Cannabis Inc. (HV1). The deal is a proof point for CGOC’s ability to drive growth through unique investments in private and public companies and access to one-of-a-kind deal flows.
CGOC invested $450,000 for 175,000 shares of DreamWater following a search by DreamWater for an investor with ties to the overall cannabis sector. CGOC helped DreamWater assess their options for acquisition and assisted in understanding valuation models. Following the acquisition, CGOC received 700,000 shares in HV1 for a 3 month return of 29% (111% annualized). Separate from this deal, HV1 was already in CGOC’s public investment portfolio.
“We’re very pleased for the DreamWater team and we’re even more pleased to deliver growth for our investors,” says Jamie Blundell, President and COO of CGOC. “This deal demonstrates the active value creation opportunity that private investments have in our portfolio. It also shows the model for potential exits for some of those investments and the ability our team has to provide resources to support them.”
Dream Water is the number one selling natural, 2.5 oz, 0-calorie, liquid sleep shot. Along with its sleep powder, Dream Water helps promote relaxation and support restful sleep. Dream Water is sold online and in over 30,000 North American retail outlets. The company currently generates approximately $6 million per annum in revenue from its current product lines.
“CGOC has been more than an investor, they’ve been a true business partner as dedicated to our success as we are,” says Steven Dick, President of DreamWater. “They dug in, leveraged their knowledge and relationships to help us navigate the cannabis sector as we assessed our options and eventually closed in on the HV1 transaction.”
“We remain committed to securing long-term total returns for our investors through investments in private and public companies that align with our investment approach,” added Blundell.
CGOC was unable to announce the investment in DreamWater previously due to blackout limitations.