viewHarvest One Cannabis Inc.

Harvest One Cannabis' fiscal 4Q delivers strong revenue boosted by consumer and medical segments

For the three and 12 months ended June 30, 2019, the Vancouver company posted net revenues of $3 million and $11.5 million respectively

Harvest One Cannabis Inc - Harvest One Cannabis' fiscal 4Q delivers strong revenue boosted by consumer and medical segments
The Vancouver-based company’s subsidiary inked a supply agreement with Canada's largest retail pharmacy chain, Shoppers Drug Mart, to supply Satipharm branded medical cannabis products

Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) revealed Tuesday that its fiscal fourth-quarter saw strong revenue growth within its consumer and medical segments. 

In a statement accompanying the global cannabis company’s latest numbers, Harvest One CEO Grant Froese said: "We are delighted with the company's progress throughout the fourth quarter and fiscal 2019 as we build a platform for long-term growth across all our segments.” 

"In the fourth quarter, we showed strong revenue growth within our consumer and medical segments while our cultivation segment remained steady prior to adding the necessary scale through the expansions of our facilities,” he added.

READ: Harvest One Cannabis wins cultivation license for Mission Road facility on Vancouver Island

For the three and 12 months ended June 30, 2019, the company achieved net revenues of $3 million and $11.5 million, respectively, representing a 489% and 1,479% increase from the same periods in 2018.

Its products are sold in some 38,000 retail distribution points around the globe, including, Walmart US, CVS, Kroger, Shoppers Drug Mart, Loblaw, Holland & Barrett, and Boots.

“We have developed excellent and trusted relationships with our provincial partners ensuring a valuable route to market,” said Froese.

Inked key deals

“We have also made the necessary investments to ensure we are one of the first to market with derivative cannabis products following the recent legislation changes in Canada," he added.

The firm recently inked a deal to acquire 100% of the issued and outstanding common shares of Delivra Corp. Additionally, the Vancouver-based company’s subsidiary United Greeneries entered into a supply agreement with Canada's largest retail pharmacy chain, Shoppers Drug Mart, to supply Satipharm branded medical cannabis products.

"Our first quarter fiscal 2020 revenues look promising for growth across all our divisions, with the addition of new Satipharm wholesale agreements and the addition of Delivra revenue to our consumer segment,” pointed out Froese.  

The company said that during the fiscal fourth quarter, it cemented an agreement to distribute Satipharm's proprietary 10 mg CBD GelPell capsules through Holland & Barrett, Europe's largest retailer of nutritional supplements and wellness products.

Harvest One serves as an umbrella over three wholly-owned subsidiaries: United Greeneries, which is a licensed cannabis producer; Satipharm, which develops cannabis-based health products; and Dream Water, which offers consumer sleep aids.

In its statement, the company also said its consumer segment was growing steadily with Dream Water inking new agreements with major retailers across North America. It is currently available in over 30,000 stores.

“Although current capital market conditions remain challenging, the company remains focused on delivering on our strategic priorities and building a successful company for the long-term based on solid fundamentals," said Froese.

Cultivation segment

The company said United Greeneries remains on track to secure a capacity target of 20,000 kgs of premium flower in 2020.

There is construction work in progress at both the Mission Road and Lucky Lake facilities. In October 2019, United Greeneries received its cultivation licence for Phase 1 of the new Mission Road facility which, when fully completed, “will triple the production capacity in Duncan and increase operational efficiency,” said the company.

To boost supply, United Greeneries signed a cultivation agreement with Stevens Green that will provide additional supply while maintaining the quality associated with the Royal High brand.

“The first harvest is scheduled for this month which will immediately boost supply for provincial partners,” noted the company.

United Greeneries is one of three licensed producers to complete a pilot program with Shoppers Drug Mart and TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF), the medical cannabis verification company.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

Quick facts: Harvest One Cannabis Inc.

Price: 0.055 CAD

Market: TSX-V
Market Cap: $11.83 m

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