Harvest One Cannabis Stock (TSXV: HVT) (OTC: HRVOF) - Investor Dashboard


➔ Harvest One Cannabis
TSX Venture Exchange: HVT
OTC Ticker: HRVOF
Sector: Healthcare
Industry: Legal Cannabis
Country: Canada
Employees:  64 (April 2019)
Established: 2015
CEO: Grant Froese

Summary

Fiscal Year-End: June
Facilities: 3
Dried Flower: Production and Sale
Extracts:  Production and Sale
Number of Patients: na
Headquarters: Vancouver, BC

Financials (03/31/19)

Cash on hand: $29.5 million
Fixed Investment: $28.0  million
Shareholders’ Equity: $100.8  million
Revenues – Last Quarter: $3.2 million
Adj. Gross Margin : 34.5%
EPS : -$0.03

Capital Structure (05/30/19)

Last Financing:  22.11 million Units at $1.82
Basic Shares: 185.6 million
Warrants: 33.7 million
Options: 17.5 million
Diluted Shares 236.8 million

Company Brief

Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world. The Company’s range of lifestyle solutions is designed to enhance quality of life. Shareholders have significant exposure to the entire cannabis value chain through wholly-owned subsidiaries: United Greeneries (a licensed producer), Satipharm (medical/health), Dream Water Global (consumer), Phytotech Therapeutics (medical/health), and Delivra (consumer). For more information, please visit www.harvestone.com. The company has facilities in Lucky Lake, Saskatchewan and Duncan, British Columbia. Satipharm, which is generating revenue, focuses on oral delivery technologies. It has been producing Gelpell ® Microgel Capsules, a pharmaceutical grade product with GMP production, since May 2015. The company is focused on growth and distribution in the EU and Australia. Satipharm plans to export Gelpell ® Microgel products into the Canadian ACMPR market.


Harvest One completes acquisition of Delivra

The acquisition of Delivra adds the LivRelief™ brand to the company’s portfolio, strengthening Harvest One’s health, wellness, and self-care strategy. Harvest One will also benefit from Delivra’s formulation expertise as the company works to create a suite of infused brands and infused versions of existing brands.

Additionally, Delivra  bolsters Harvest One’s existing distribution network of more than 30,000 stores across North America.


HVT shareholders will have significant exposure to some of the largest commercial opportunities in the global cannabis sector

United Greeneries is a Canadian ACMPR Licensed Producer and will be HVT’s horticultural arm and recreational brand.

  • ACMPR (MMPR) Licensed Producer Duncan Facility in BC
  • Current capacity of ~1,000 kg/year, modular construction underway to triple capacity
  • Lucky Lake Facility in SK targets 8,500 kg/year
  • Outdoor grow in BC targets 50,000 kg/year with regulatory changes
  • Supply agreement with Ontario, British Columbia, Manitoba, and Saskatchewan
  • License to sell cannabis oil products

Satipharm is specialized in the development and manufacturing of cannabis- based health products and will be the company’s medical and health brand

  • Flagship Gelpell ® Microgel Capsules to lead growth
  • Near-term growth from supplement sales in EU, mid-term growth from entry into regulated markets (Canada, Australia, etc.)
  • Global exclusive rights to Gelpell ® on cannabis applications; Gelpell Phase 1
  • Growing portfolio of delivery technology IP
  • Phase 1 and Phase 2 clinical trials complete

The acquistion of Dream Water positions Harvest One as a first mover in the global cannabis and sleep markets. 

  • Natural, zero-calorie liquid sleep shot
  • Fully approved by Health Canada
  • Contains melatonin, GABA, and 5-HTP to help people fall asleep
  • Two product lines: relaxation and beauty

Delivra strengthens Harvest One’s health, wellness, and self-care strategy.

  • Adds the LivRelief™ brand to the Harvest One brand portfolio
  • Brings formulation expertise to the Harvest One suite of brands
  • Adds to Harvest One’s existing distribution network
  • Two FDA approved products

Focused on recreational and medical markets
HVT will be a well-financed, growth- oriented cannabis company focused on supplying Canadian and international medical and recreational cannabis markets.

United Greeneries
Canadian ACMPR Licensed Producer with focus on large-scale horticultural operations for the upcoming Canadian recreational cannabis market

Satipharm
International medical cannabis brand with focus on oral delivery technologies for strategic entry in emerging medical cannabis markets and the existing medical cannabis market in Canada

Dreamwater
All natural sleep aid currently selling in over 30,000 stores in North America.

Burb
Retail cannabis company with plans to open eight to 10 stores in British Columbia by mid-2019 and plans to expand into Alberta, Saskatchewan, and Ontario.

Delivra 

The acquisition of Delivra adds the LivRelief brand to the company’s product portfolio and adds to Harvest One’s distribution network.

Phyotech Therapeutics

Israeli-based Phytotech develops oral delivery formulations for cannabinoid drugs. The acquisition of Phytotech will supplement the company’s health and wellness strategy.


Highlights

  • Recreational and medical focus
  • Brands
    • United Greeneries focused on large-scale production
    • Satipharm focused on oral delivery technologies
    • Dream Water and Dream Water Canada focused on the sleep aid market
    • Phytotech focused on oral delivery formulations
    • Delivra focused on health and wellness products
  • Serving Canada and international markets, including Europe, Australia, and Israel
  • Strong balance sheet
  • Royal High premium cannabis brand and Captain’s Choice brand
  • Online retail platform for medical clients

Growth Strategy

  • Lucky Lake Facility: Final project completion and Health Canada licensing expected in Q4 2019
  • 20,000 kilograms of cultivation capacity by the end of 2019
  • Expand Satipharm distribution in the EU, Australia, and preparing to import into Canada; supply agreement with Holland & Barrett in the U.K. and Ireland and supply agreement with Health House for distribution throughout Australia, New Zealand, and Asia
  • Enter the global sleep and cannabis markets through Dream Water
  • New retail vertical with initial investment in Burb
  • 52% stake in Greenbelt Greenhouse to help expand future extraction and processing capabilities
  • Introduce LivRelief™ to US markets
  • Infuse consumer products with CBD for release in Canada and U.S. where jurisdictions allow

Differentiators

  • Two indoor production facilities in two provinces
  • Wholesale rather than investing in competitive medical distribution in Canada
  • In-house QA/QC laboratory
  • Technology-driven portfolio of health products
  • Active in European CBD markets and engaged in clinical trials
  • Site selected for potential outdoor grow
  • United Greeneries: supply agreements with British Columbia, Ontario, Manitoba, Saskatchewan, and Shoppers Drug Mart
  • 20% investment in retail cannabis company Burb
  • Agreement to supply Shopper’s Drug Mart with Satipharm medical cannabis products
  • Supply agreement with GenCanna for extracted products
  • Agreement for Stevens Green to cultivate and harvest United Greeneries’ premium cannabis genetics at their Ontario facility

Institutional Analyst Coverage

NEAL GILMER
Haywood Securities

GREG MCLEISH, CFA
Mackie Research


Curated Stories & News


Visit Harvest One Cannabis, Inc.
at www.harvestone.com.

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