Harvest One pleased to announce record revenues for first quarter of fiscal 2019
TORONTO, Nov. 29, 2018 /CNW/ – Harvest One Cannabis Inc. (TSXV:HVT) (“Harvest One” or the “Company”) today announced the release of its financial and operating results for the three months ended September 30, 2018.
“This has been an exciting and decisive period in the history of Harvest One,” said Grant Froese, CEO of Harvest One. “Harvest One has undergone important leadership changes as it transitions to the next stage of its development. This quarter was also a pivotal period in the evolution of the Canadian Cannabis industry as all stakeholders underwent the unique operational exercise of preparing for full legalization of recreational cannabis in Canada. I am proud to say Harvest One has executed on our roll-out strategy, meeting all provincial obligations and establishing the basis for successful long-term relationships with both public and private retailers.”
The work we are doing now lays the foundation for a landmark year in 2019 when cannabis companies will be judged on execution and financial performance. This is emphasized by Harvest One’s record revenues this quarter, representing an 862 per cent increase over the same period last year. With revenue forecasts in place for each of our four divisions – licensed producer, retail, medical & nutraceutical, and consumer – Harvest One remains very optimistic for the balance of fiscal 2019.
Grant Froese, CEO of Harvest One
- Q1 2019 revenue for the Company was $1.68 million, an increase of 862 per cent from Q1 2018 and a 227 per cent increase from the previous quarter. This increase is primarily due to the contribution of Dream Water sales, bulk sales of cannabis to other Licensed Producers, and an initial recreational cannabis sale to the Province of British Columbia.
- As of September 30, 2018, the Company maintains a very strong balance sheet with a cash balance of $48.3 million. This cash position means all current expansion plans are fully funded and allows for further acquisitions that support the Company’s brand and product development strategy.
- The Company signed agreements to supply adult-use cannabis with four provinces: British Columbia, Ontario, Manitoba and Saskatchewan. The Company successfully met all provincial load-in obligations.
- The Company also initiated its retail strategy acquiring a 19.99 per cent interest in a luxury BC-based retail group called Burb Cannabis Corp. (“Burb”). The investment falls within the allowable maximum investment of 20 per cent established by the BC Government. Burb expects to open between eight to 10 stores in BC in 2019, with a further roll out across the country.
- The Company announced favourable results in Phase 2 clinical trials using its proprietary Satipharm capsules for the treatment of pediatric epilepsy. The median seizure reduction was -82 per cent in the 12-week treatment period. These results were recently presented at the Epilepsy Society of Australia Conference.
- The Company closed a strategic acquisition of Phytotech Therapeutics (“PTL”) giving the Company access to valuable IP and research capabilities to support product development for Satipharm.
- The Company entered into a multi-year Extraction Services Agreement with Valens GroWorks Corp. (“Valens”) for cannabis extraction and value-added services. The Company intends to work very closely with Valens to develop innovative products to support both its recreational and medical strategies.
- The Company has started construction on two separate expansion sites – one in British Columbia and the other in Saskatchewan. In Duncan, BC the Company’s facility is undergoing a modular expansion which will triple output as the modules come online. The first harvest is scheduled for early 2019. At the Company’s Lucky Lake facility in Saskatchewan construction is underway on a state-of-the-art indoor cultivation facility which will produce an estimated 8,000+ kgs of the Company’s premium-quality dried flower product annually.
Fiscal 2019 started with the appointment of a new CEO Grant Froese. Mr. Froese comes to Harvest One with 38 years retail and operations experience, most recently as Chief Operating Officer of Loblaw. In addition to this appointment, Harvest One underwent a significant overhaul of the senior leadership team, making the following notable additions:
- Andrew Kain, Chief Operating Officer and General Counsel
- David Hyde, Advisory Board
- Frank Holler, Board of Directors,
- Will Stewart, SVP Corporate and Public Affairs
- Ann Gallery, SVP Corporate Communications
- Gord Davey, SVP Global Sales
- Todd Dea, President of United Greeneries
- Jonathan Hartshorn, President of Satipharm
- Tucker Wright, President of Dream Water
For more information on the team, please visit Harvest One’s Management page.
Harvest One’s 2019 first quarter MD&A and consolidated financial statements for the quarter ended September 30, 2018, along with all previous Harvest One public filings, may be found on SEDAR at www.SEDAR.com.
Harvest One Cannabis Inc (CSE:HVT) Director of Investor Relations Colin Clancy tells Proactive Investors the cannabis company has announced favorable 1Q earnings for fiscal 2019, bringing in C$1.67 million in revenue — a 900% increase over the same period last year and more than double the previous quarter. Clancy says the increase is primarily due to the contribution of its consumer products division Dream Water Global and an initial recreational cannabis sale to the province of British Columbia, as well as bulk sales of cannabis to other licensed producers.
About Harvest One Cannabis Inc. (TSXV: HVT)
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 three wholly-owned subsidiaries; United Greeneries, a Licensed Producer; Satipharm (medical and nutraceutical); and Dream Water Global (consumer); and a minority interest in Burb Cannabis (retail operations). For more information, please visit www.harvestone.com.