HAVN News Release HAVN Life Sciences to acquire GCO Packaging 2021-01-26 10:28 ET - News Release Mr. Tim Moore reports HAVN LIFE SCIENCES ENTERS DEFINITIVE AGREEMENT TO ACQUIRE STRATEGIC MANUFACTURING & PACKAGING FACILITY FOR ITS RETAIL DIVISION HAVN Life Sciences Inc. has entered into a definitive agreement to acquire, on the terms and conditions set forth in the definitive agreement, all of the outstanding share capital of GCO Packaging and Manufacturing Ltd., which operates a large-scale manufacturing, packaging and distribution facility in British Columbia, in exchange for six million common shares of HAVN Life. HAVN Life intends to utilize the facility to support formulation and manufacturing processes in house to ensure the highest standards of quality and efficacy. The acquisition is expected to enable HAVN Life to accelerate and scale production of new formulations and products at a single location. "Having the ability to manufacture natural health care products in house will be absolutely critical for us," noted Tim Moore, chief executive officer of HAVN Life. "The facility is expected to provide a full suite of in-house manufacturing capabilities, thereby expanding the company's potential to capture margins and revenues through vertical integration and expansion of our portfolio into additional product categories." Scheduled to launch this spring, the company's retail product line will include seven natural health products which support immune health, fatigue, memory, focus and overall brain function. With the arrival of this set of products, HAVN Life will take a major step forward in its mission of providing naturally derived and standardized products to support human optimization. Chief science officer Gary Leong noted: "We're excited to introduce our first seven products this spring and we're expecting the acquisition of this facility to set us up to continue developing innovative new formulations and to effectively get innovative products to market. Having worked in the natural health industry for over 20 years, I believe it is vital for HAVN Life to integrate its retail division vertically." With over 16,000 square feet of space, the facility features a large warehouse with multilevel inventory racking, fully equipped and functioning production and packaging rooms, and modern, fully furnished boardroom, laboratory and offices. The facility currently holds United States Department of Agriculture (USDA) organic, Canadian organic and kosher certifications and a large loading area for easy delivery vehicle access. The 2.11-acre free-standing facility is strategically located in the lower mainland near several key transportation hubs, providing an excellent access point for the distribution of HAVN Life's forthcoming retail product line. Acquisition details Consideration shares issuable to GCO will be subject to an escrow arrangement whereby one-sixth of such shares will be released from escrow every three months, aside from 1,214,954 of the consideration shares which will be subject to an escrow arrangement whereby one-half of such shares will be released from escrow four months after closing of the acquisition and the remaining debt settlement shares will be released from escrow five months after closing. The closing of the acquisition of GCO is subject to a number of conditions, including the satisfactory completion of due diligence, receipt of all required regulatory and third party consents, and satisfaction of other customary closing conditions. The closing of the acquisition is expected to occur in or around 10 days. About HAVN Life Sciences Inc. HAVN Life Sciences is a biotechnology company on a mission to unlock human potential using evidence-informed research. The company is focused on standardized, quality-controlled extraction of psychoactive compounds from plants and fungi and the development of natural health care products from non-regulated compounds. We seek Safe Harbor