For its fiscal first quarter ended September 30, the Vancouver-based company said Thursday that its revenue surged to C$1.68 million, almost 10 times the C$174,544 reported a year earlier. Another factor in the boost was an initial recreational-cannabis sale to the province of British Columbia.
Highlights included agreements to supply adult-use cannabis to four provinces: Ontario, Manitoba and Saskatchewan, as well as British Columbia.
“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,” said Grant Froese, who assumed the role of CEO in July. “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.”
The company also acquired a 19.99% interest in a British Columbia-based luxury retail group known as Burb Cannabis Corp. Burb expects to open eight to 10 stores in BC in 2019. The investment falls within the allowable maximum investment of 20% established by the British Columbia government, according to Harvest One.
Harvest One added that it maintained a strong balance sheet with a cash balance of C$48.3 million. Its comprehensive loss widened to C$5.8 million, or C$0.03 per share, from C$1.9 million, or C$0.02 per share.
The company cited favorable results in Phase 2 clinical trials of its Satipharm capsules for the treatment of pediatric epilepsy. The median seizure reduction was 82% in the 12-week treatment period. These results were recently presented at the Epilepsy Society of Australia Conference.
Harvest One recently closed its acquisition of Phytotech Therapeutics, adding research capabilities to support product development for Satipharm.
Shares of Harvest One slipped C$0.01 to C$0.42 in Thursday's Canadian trading. They were down US$0.01 to US$0.31 on the OTC market.
Contact Dennis Fitzgerald at [email protected]