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Harvest One Reports Q2 2021 Financial Results

March 1, 2021 – Vancouver, British Columbia – Harvest One Cannabis Inc. ("Harvest One" or the "Company") (TSX-V: HVT; OTCQB: HRVOF), a uniquely positioned cannabis-infused CPG leader, is pleased to announce its fiscal Q2 financial and operating results for the three and six months ended December 31, 2020.

Management Commentary

“Our second quarter financial results reinforce the continued improvement of the Company’s operating performance and financial position, said Gord Davey, President and Chief Executive officer of Harvest One. “Management’s continued focus on operational improvements and cost reductions is reflected in considerably improved profit margins and bottom line results for the first half of fiscal 2021. We will build on this positive momentum and continue to execute on the Company’s commercial strategy and growth initiatives.

Mr. Davey continued, “Subsequent to the quarter-end, the Company made several key strategic announcements including the divestiture of our Satipharm and Phytotech subsidiaries, as well as our recent press release announcing an upsized bought deal financing with Mackie Research Capital and ATB Capital Markets. Both developments further strengthen the Company’s ability to support the growth of its infused CPG business and build on the recent success of our cannabis-infused topicals. We are encouraged with this ongoing progress and remain committed to the growth of our brands in North American and international markets while maintaining rigorous cost control and fiscal responsibility.”

Financial and Operating Highlights for the Quarter:

  • Reported $1.94 million revenue from continuing operations during the current quarter compared to $1.91 million during the same period in 2019. Product mix continues to transition from cultivation to CPG products.
  • 52% gross margin from continuing operations during the current quarter compared to 18% during the same period in 2019.
  • Adjusted EBITDA loss of $1.28 million during the quarter compared to a loss of approximately $2.06 million for the same period in 2019, representing an improvement of approximately 38%, primarily due to higher gross margins and a decrease in expenses.
  • Expenses decreased by $1.84 million and $3.6 million for the three and six months ended December 31, 2020, compared to the same period in the prior year, due to restructuring initiatives and cost rationalization projects.
  • On October 16, 2020, Harvest One completed the sale of its majority interest in Greenbelt Greenhouse Ltd. for net cash proceeds of approximately $2.85 million. Greenbelt was a non-core cultivation asset.
  • On October 9, 2020, Harvest One announced leadership changes with Gord Davey's appointment as Interim President and Chief Executive Officer and Director. Andy Bayfield transitioned to the Board of Directors from his role as Interim Chief Executive Officer.
  • On December 1, 2020, Harvest One announced leadership changes with Mr. Jack Tasse appointed as Interim Chief Financial Officer of the Company, replacing Marc Tran who resigned to pursue another opportunity within the resource sector.
  • Net loss for the second quarter of fiscal 2021 increased compared to the first quarter of fiscal 2021 primarily due to the write-off of capitalized costs in construction in progress as part of the Strategic Review.
  • The Company had current assets of $13.8 million (June 30, 2020 - $28.4 million) and current liabilities of $9.8 million (June 30, 2020 - $19.2 million) as at December 31, 2020. Further reductions of current liabilities remains an area of focus in the short to medium term.

Subsequent to Quarter End:

  • On January 29, 2021, the Company announced its LivRelief CBD cream was the top-selling SKU in the Infused Topicals category in Ontario for the six-month period ended December 2020, by dollars sold, based on OCS Sales Data. In addition, for the same period, the Company’s LivRelief brand captured approximately 32% market share within the Infused Topicals category in Ontario based on sales revenue. 
  • On February 10, 2021, the Company announced it had expanded its international presence with the signing of a Distribution Agreement with leading distributor, Golden River Services Ltd. based in China, to distribute Dream Water products throughout China and other Asian countries, including Hong Kong, Macao and Taiwan.
  • On February 8, 2021, the Company’s Board of Directors appointed both Mr. Gord Davey and Jack Tasse as permanent Chief Executive Officer and Chief Financial Officer respectively.
  • On February 15, 2021, the Company announced it had entered into definitive agreements to sell its Satipharm Business for approximately $4 million worth of Buyer Shares of the Cann Group Limited ("Cann Group" or the "Buyer") (ASX: CAN). The Satipharm transaction is expected to close in March 2021. Cash proceeds from the Satipharm Transaction will be used to reduce the current liabilities of Harvest One and fund its operations.
  • On February 24, 2021, the Company announced a $4 million bought deal equity financing which was subsequently upsized to $5 million with an additional 15% over-allotment option. The financing is scheduled to close on March 17, 2021.

Summary of Key Financial Results

  For the three months ended For the six months ended
  December 31 December 31
  2020 2019 2020 2019
Select Financial Information $ $ $ $
Net revenue 1,936 1,911 3,758 3,639
Gross profit 1,003 338 1,448 675
Expenses 2,753 4,594 5,844 9,449
Asset impairment and write-downs 9,185 7,901 9,185 7,901
Loss from operations (10,935) (12,157) (13,581) (16,675)
Net loss attributable to common shareholders (14,286) (15,991) (18,040) (21,252)
Net loss per share – basic and diluted (0.06) (0.07) (0.08) (0.10)
Weighted average number of Common Shares 215,079,486 214,753,945 215,079,486 214,207,173
Adjusted EBITDA(1) (1,275) (2,057) (2,668) (5,277)
  1. Defined as loss from operations before interest, taxes, depreciation and amortization and adjusted for share-based compensation, common shares issued for services, fair value effects of accounting for biological assets and inventories, asset impairment and write-downs, and other non-cash items, and is a non-GAAP measure discussed in the “Adjusted EBITDA” section.
  December 31 June 30
  2020 2020
Select Statements of Financial Position Information $ $
Cash 1,443 1,406
Current assets 13,810 28,413
Non-current assets 13,883 29,431
Current liabilities 9,811 19,194
Non-current liabilities 2,147 2,080
Equity 15,735 36,570

Strategic Review & Impact on Operations  

The execution of the Strategic Review announced in February 2020 continued to have its impact on Q2 financial results and reflect consistent improvements over the same period last year. The strategy of focusing operations on CPG and infused cannabis, divesting non-core assets, reducing overheads resulted in restructuring initiatives and cost control measures leading to a material impact on the Company’s overall financial performance throughout fiscal 2021.

Revenue for the Company’s Consumer segment has remained consistent despite the continued impact of COVID and associated travel restrictions across North America and the globe. Adjusted EBITDA loss improved significantly, with a $0.78 million favorable increase representing a 38% improvement over the same period in the prior year, primarily due to slightly higher revenue, significantly higher gross margin, and a sizable reduction in expenses.

Cash used in operating activities correlates with the above improvements and was $3.86 million and $7.14 million for the three and six months ended December 31, 2020, compared to $4.4 million and $14.6 million for the same periods in the prior year resulting in a decrease of $0.54 million and $7.47 million respectively.

Following the recent announcement to sell its Satipharm and its related subsidiaries, the Medical and Nutraceutical segment is now reported under discontinued operations. The Company’s Consumer segment is reported under continuing operations consisting of Dream Water and LivRelief.


Management anticipates sales volumes, net revenues, and adjusted EBITDA to improve throughout the next fiscal year due to a full year of infused topical sales, expanded distribution coverage, launch initiatives, branding initiatives, improvements in gross margin, and a continued focus on reducing overhead costs.

The Company is preparing for the imminent conclusion of the Company’s Strategic Review upon completion of the Satipharm transaction. Additionally, the Company anticipates the oversubscribed bought deal financing to close on March 17. Both of these developments will provide the necessary resources to support the execution of the company’s growth initiatives including the launch of LivRelief products in the United States and the roll out of a cannabis infused version of Dream Water. The additional funds will also allow for the necessary investment towards branding and marketing to drive increased awareness of our consumer brands.

About Harvest One

Harvest One is a global CPG company that develops and distributes premium health, wellness and selfcare products with a market focus on sleep, pain, and anxiety. Harvest One is a uniquely positioned company in the cannabis space with a focus on cannabis infused and non-infused consumer packaged goods.  Harvest One owns and operates two subsidiaries: Dream Water Global and LivRelief. For more information, please visit

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance about Harvest One and its business and operations, which include, among other things, its corporate strategy moving forward, its financial position, and future opportunities available for the Company. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The forward-looking information contained in this press release is made as of the date hereof, and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accept responsibility for the adequacy or accuracy of this release.

Investor Relations:
Colin Clancy
Investor Relations

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