With old target of $2.50 were we going with new News !! $$$$Cannabis company Harvest One (TSXV:HVT) has acquired sleep aid brand Dream Water for $34.5 million, a move which will give Harvest One a well-established brand presence, says Greg McLeish of Mackie Research. In a client update on Friday, the analyst reiterated his Buy recommendation and $2.50 target price for HVT. On May 30, BC-based Harvest One announced the acquisition of Dream Water, which markets single-serving 2.5oz liquid shots containing sleep agents melatonin, GABA and 5-HTP. Harvest One intends to expand the Dream Water brand into the cannabis space to produce CBD-based and/or full-spectrum hemp-based products, says McLeish, who argues that the acquisition positions Harvest One as a global first mover in the cannabis sleep-aid market. Dream Water has a well-established brand presence in the sleep aid market and this acquisition adds a ready-made consumer goods marketing, distribution and product development division to Harvest One, says McLeish. Following this acquisition Harvest One will have a cash position of approximately $62 million and zero debt. This strong cash position will will allow management to continue with its capital expansion plans, pursue strategic acquisitions, and address potential working capital requirements, he says. The company also recently announced that its wholly owned subsidiary, United Greeneries, has entered into a lease agreement for a lower BC mainland site for the production of cannabis. The entire facility is comprised of over 59,000 sq. ft., with management saying that it will be able to meet or exceed its capacity target of 8,000 kg per year. The analysts valuation relies on a 12x EV/EBITDA multiple of his 2020 estimate which is then discounted using a 15 per cent discount rate. The $2.50 target represents a 194.1 per cent projected return at the time of publication.