Dream Water sold for $27 million
Canadian cannabis firm takes control of Hollywood-based sleep aid producer
Dream Water, a Hollywoodbased company that makes a sleep aid product, has agreed to be acquired by Harvest One Cannabis, a global company based in Vancouver, British Columbia.
Harvest One Cannabis, a public company that services medical and recreational cannabis markets, recently announced the acquisition of Dream Water for $34.5 million Canadian — about $27 million in U.S. dollars. Harvest One has a horticultural arm and is a Canadian-licensed producer for United Greeneries Ltd., a medical and pharmaceutical arm of Satipharm AG in Switzerland, according to a news release.
Dream Water’s operations in the United States and Canada are expected to be combined as part of the acquisition, and Harvest One Cannabis will own the worldwide rights to and intellectual property for Dream Water, according to Harvest One’s news release.
David Lekach, CEO of Dream Water, said he couldn’t talk about the sale until it closed. That is expected by May 31. Lekach, 38, co-founded the company with Vincent Porpiglia, who created the original version of Dream Water.
Andreas Gedeon, CEO of Harvest One, said in a news release that Dream Water positions the company “as first movers in both the global cannabis and sleep markets.”
Dream Water products are marketed as dietary supplements to promote relaxation and enhance sleep. Introduced in late 2009 after two years of research and development, Dream Water contains a propriety formulation of naturally occurring substances, including melatonin, that are commonly used for calming and sleep, according to the company’s website.
Lekach said there is no cannabis or other drugs in its product.
The product is available in a single-serving, 2.5-ounce liquid and sleep powder packets that can be taken with or without water.
The company’s products are available in more than 30,000 retail outlets across the United States, Canada and Mexico, as well as in major North American airports, through Amazon and Dream Water’s monthly online subscription service.
Harvest One’s stock is traded on the Toronto Stock Exchange. The acquisition requires shareholder and stock exchange approvals.