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Harvest One Reports Q3 2021 Financial Results

May 27, 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, with brands LivRelief TM and Dream Water TM products is pleased to announce its fiscal Q3 financial and operating results for the three and nine months ended March 31, 2021.

Management Commentary

“Our third 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 targeted sales, marketing, operational improvements and cost reductions, is reflected in considerably improved profit margins and bottom line results on a quarterly year-to-date basis. We will build on this positive momentum and continue to execute on the Company’s commercial strategy and growth initiatives.”

Mr. Davey continued, “During the third quarter, the Company executed on key strategic projects including the divestiture of its Satipharm and Phytotech subsidiaries, as well as a bought deal financing with Research Capital Corporation and ATB Capital Markets Inc. These projects further strengthened the Company’s liquidity position to support the growth of its global CPG business and build on the ongoing success of its LivRelief TM cannabis-infused topicals. We are encouraged with this ongoing progress and remain committed to the growth of our brands in North American and global markets through focused sales, marketing and expanded distribution channels, while maintaining rigorous cost control and fiscal responsibility.”

Financial and Operating Highlights for the Quarter:

  • Reported $2.02 million revenue from continuing operations during the current quarter compared to $1.88 million during the same period in 2020. Product mix continues to transition from cultivation to CPG products.
  • 37% gross profit from continuing operations during the current quarter compared to 24% during the same period in 2020. This increase is driven by continuous operational improvements and cost control initiatives over the last nine months.
  • Adjusted EBITDA(1) loss of $0.98 million during the quarter compared to a loss of approximately $1.6 million for the same period in 2020, representing an improvement of approximately 38%, primarily due to higher gross profits and quarter over quarter reduction in selling, general and administrative expenses (“SG&A”).
  • The Company had current assets of $15.87 million (June 30, 2020 - $28.4 million) and current liabilities of $8.66 million (June 30, 2020 - $19.19 million) as at March 31, 2021. Further reductions of current liabilities remains an area of focus in the short to medium term.
  • On March 17, 2021, the Company closed an oversubscribed $5,750 bought-deal public offering with Research Capital Corporation, as sole bookrunner, and ATB Capital Markets Inc., as the co-lead underwriters, pursuant to which the Company issued 37,096,700 units of the Company (the “Units”) at a price of $0.155 per Unit for gross proceeds to the Company of approximately $5.75 million (the “Offering”), including the full exercise of an over-allotment option. 
  • On March 29, 2021, the Company announced the conclusion of its Strategic Review. Key achievements of the Strategic Review include:
    • Asset light and streamlined business model - repositioned the Company from cultivation and processing to a lean, non-capital-intensive cannabis-infused and non-infused CPG operation focusing on innovation, sales, marketing and distribution channels. Management is keenly focused on its core competencies, as well as market trends and consumer needs, while utilizing strategic manufacturing partners to advance the Company’s CPG business model.
    • Improved financial position and liquidity - completed the strategic divestiture of five non-core assets, materially improving the Company’s balance sheet and liquidity with non-dilutive capital reducing both short and long-term liabilities. The recent closing of the Offering significantly improved the working capital position of the Company and its ability to invest in branding and marketing activities.
    • Corporate Structure – significant changes with the Company’s management team and leadership model, thereby creating a flatter corporate structure with a strong CPG-focused management team. This corporate structure was stress tested over the last 12 months resulting in the ability of the Company to navigate the capital markets and close the Offering.

Subsequent to Quarter End:

  • On April 8, 2021, the Company granted an aggregate of 5,995,000 incentive stock options under the Company’s stock option plan to certain directors, officers and employees of the Company. The options are exercisable at a price of $0.12 per share and will have a term of five years from the date of issuance.
  • On May 13, 2021, the Company announced the launch of its new LivRelief™ product SKU, Extra Strength Transdermal CBD Cream, which will launch on the Medical Cannabis by Shoppers™ platform in June 2021 as part of its strategic growth and brand expansion initiatives. The new LivRelief™ Extra Strength Transdermal CBD Cream contains 750mgs of CBD and will offer consumers three times the amount of cannabinoids found in the LivRelief™ CBD Cream.

Summary of Key Financial Results

  For the three months ended For the nine months ended
  March 31 March 31
  2021 2020 2021 2020
Select Financial Information $ $ $ $
Net revenue 2,027 1,880 5,785 5,519
Gross profit 745 451 2,193 1,126
Expenses 1,928 4,215 7,772 13,665
Asset impairment and write-downs (485) 27,465 8,700 35,365
Loss from operations (698) (31,229) (14,279) (47,904)
Net loss attributable to common shareholders (1,716) (36,364) (19,765) (56,616)
Net loss per share – basic and diluted (0.01) (0.16) (0.09) (0.26)
Weighted average number of Common Shares 221,148,418 214,753,073 217,072,931 214,497,526
Adjusted EBITDA(1) (985) (1,601) (3,653) (6,879)


  March 31    June 30
  2021 2020
Select Statements of Financial Position Information $ $
Cash 5,276 1,406
Current assets 15,877 28,413
Non-current assets 13,304 29,431
Current liabilities 8,668 19,194
Non-current liabilities 2,064 2,080
Equity 18,449 36,570

Strategic Review & Impact on Operations  

The execution of the Strategic Review announced in February 2020 continues to have its impact on Q3 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.

Overall 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(1) loss improved significantly, with a $3.2 million favorable increase year over year representing a 50% improvement over the same period in the prior year, primarily due to slightly higher revenue, significantly higher gross profit, and a sizable reduction in SG&A.

Cash used in operating activities correlates with the above improvements and was $8.3 million for the nine months ended March 31, 2021, compared to $18.3 million for the same period in the prior year, resulting in a decrease of $10.0 million.


Management anticipates sales volumes, net revenues, and adjusted EBITDA(1) 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 profit, and a continued focus on reducing overhead costs.

About Harvest One

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

Non-IFRS Measures, Reconciliation and Discussion

This press release contains references to “Adjusted EBITDA” which is a non-IFRS financial measure. Adjusted EBITDA is a measure of the Company’s 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-IFRS measure.

This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies.

There are no comparable IFRS financial measures presented in Harvest One’s financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company’s management’s discussion and analysis for March 31, 2021. This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provide additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding our performance and may assist in the evaluation of the Company’s business relative to that of its peers.

The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the IFRS financial measures presented in the Company’s financial statements. For more information, please see “Adjusted EBITDA (non-IFRS measure)”  and “Non-IFRS Measures” in the Company’s management’s discussion and analysis for March 31, 2021, which is available under the Company’s profile on


  1. This is a non-IFRS reporting measure. For a reconciliation of this to the nearest IFRS measure, see “Adjusted EBITDA (non-IFRS measure)”  and “Non-IFRS Measures” in the Company’s management discussion and analysis for March 31, 2021.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, among other things, statements with respect to future expansion plans, initiatives and strategies of the Company, and the Company’s performance, growth initiatives, profitability, production capacity and gain in market share.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: implications of the COVID-19 pandemic on the Company's operations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors” in the Company's AIF, and under the heading “Risks and Uncertainties” in the Company’s Management’s Discussion and Analysis dated October 28, 2020, for the year ended June 30, 2020, filed under the Company's profile on SEDAR at

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:
Jack Tasse
Investor Relations

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