Midas letter from who we are watching https://www.stockhouse.com/b/2HjErFF
Harvest One Cannabis HVT (CVE)
Harvest One is a global cannabis company servicing both the recreational and medical markets. The company serves as the umbrella company over its two main subsidiaries United Greeneries and Satipharm.
The former’s flagship property – the Duncan Facility – rests on a 1.2 acre property previously used as cold storage for a large commercial greenhouse growing operation located adjacent to a 40-acre land package on Vancouver Island. On October 13, 2017, Health Canada issued the amendment to allow sale of dried marijuana to registered patients.
The Duncan Facility has approximately 10,000 square feet of cultivation area and high compliance items such as a Level 8 Narcotics Vault and an in-house biochemical laboratory. Total production capacity is about 1,000 kg of cannabis per annum
Harvest One’s big prize is their Lucky Lake, Saskatchewan property. It’s currently in the late-stage application phase to operate a 62,000 square foot agricultural facility 100 km south of Saskatoon. If approved, cultivation capacity could be upwards of 11,700 kg of cannabis annually.
Furthermore, United Greeneries has addition plans to retrofit an industrial lumber kiln in Chemainus, British Columbia. Total annual capacity is anticipated at approximately 8,000 kg and can be fully funded with current cash reserves. This is an early-stage project at this point.
On the pharmaceutical front, Harvest One’s Satipharm subsidiary already has a fast-growing product on the market. Its Gelpell® Microgel Capsules are a CBD-only medicinal solution which uses micro-emulsion to substantially enhances the oral bioavailability of the cannabinoid.
But here’s the money part: Sales of Satipharm’s Gelpell-CBD capsules in the first quarter, while very modest, were $174,544, a 76.8% increase over fiscal 2017 sales. That’s only poised to increase because in November 2017, Satipharm commences distribution Gelpell-CBD capsules to approved patients in Australia.
That isn’t all. In January 2018, Satipharm AG received an initial import license to sell in the Canadian market. Once initialized, Satipharm’s Gelpell capsules will be added to United Greeneries’ ACMPR retail distribution. The company estimates the product will start distribution sometime during Q2 2018.
Although there’s some projection required (the revenues aren’t there yet and Lucky Lake still hasn’t been approved), I believe Harvest One could be an attractive target. They have existing (albeit modest) west coast production, fledgling larger production nearing approval, and a fast-growing medicinal product already on the market. With subsidiaries on four continents, they offer potential suitors higher yields and quick access to Australian/European and soon-to-be Canadian medicinal markets.
Disclosure: Neither Midas Letter Publishing Group nor the author own any financial interests in the profiled companies.