Harvest One Announces Q2 2019 Financial Results Including a 123% Revenue Increase Over Q1 and Gross Margin of 53% on Cannabis Sales
February 28, 2019
Harvest One Cannabis Inc. ("Harvest One" or the "Company") (TSX-V: HVT; OTCQX: HRVOF) today announced the release of its financial and operating results for the three and six months ended December 31, 2018.
Q2 2019 net revenue for the Company was $3.7 million, a sequential increase of 123% over Q1 2019 ($1.7 million). This increase was primarily attributed to initial recreational load-ins under our supply agreements with British Columbia, Ontario, Manitoba and Saskatchewan.
Q2 2019 gross margin before fair value adjustments of 47%. Included in this, is a gross margin of 53% for United Greeneries which is in line with larger Canadian Licensed Producers.
As of December 31, 2018, the Company maintains a very robust balance sheet with a cash balance of $41.0 million. This cash position means all current expansion plans are fully funded and allows for accretive transactions that support the Company’s brand and product development strategy.
Through its extraction agreement with Valens GroWorks Corp. (“Valens”), the Company has initiated its product development strategy to produce oil based derivative products.
Satipharm launched sales of its reformulated proprietary capsules online in the United Kingdom and in the European Union where local regulations allow. Brick and mortar distribution will be available shortly with Canadian distribution to follow.
Expansion plans at the Duncan and Lucky Lake facilities are on track as the Company targets an annual run rate of 20,000 kg premium indoor grown flower by the end of calendar 2019.
The Company upgraded to the OTCQX under the ticker “HRVOF” increasing its exposure to the US investment community and improving its liquidity for investors both in Canada and the US.
“We are delighted to announce our second successive quarter of record growth for Harvest One with an increase of 123% in revenue over the previous quarter” says Grant Froese, CEO of Harvest One. “These results reflect a successful roll out of our recreational strategy as we continue to deliver on our agreements with all our provincial and private partners. As we focus on operational excellence and execute on our strategy across all our divisions, we will continue to drive revenue growth for Harvest One throughout 2019”.
Harvest One’s 2019 second quarter MD&A and consolidated financial statements for the quarter ended December 31, 2018, along with all previous Harvest One public filings, may be found on SEDAR at www.SEDAR.com.
About Harvest One Cannabis Inc. (TSX-V: HVT; OTCQX: HRVOF)
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 its 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.
For more information, please contact:
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