TSX-V: HVT; OTCQX: HRVOF
VANCOUVER, Feb. 28, 2019 /CNW/ - Harvest One Cannabis Inc.
("Harvest One" or the "Company") (TSX-V: HVT; OTCQX: HRVOF) today announced the release of its financial and
operating results for the three and six months ended December 31, 2018.
Highlights:
- Q2 2019 net revenue for the Company was $3.7 million, a sequential increase of 123% over Q1
2019 ($1.7 million). This increase was primarily attributed to initial recreational load-ins
under our supply agreements with British Columbia, Ontario,
Manitoba and Saskatchewan.
- Q2 2019 gross margin before fair value adjustments of 47%. Included in this, is a gross margin of 53% for United Greeneries
which is in line with larger Canadian Licensed Producers.
- As of December 31, 2018, the Company maintains a very robust balance sheet with a cash
balance of $41.0 million. This cash position means all current expansion plans are fully funded
and allows for accretive transactions that support the Company's brand and product development strategy.
- Through its extraction agreement with Valens GroWorks Corp. ("Valens"), the Company has initiated its product development
strategy to produce oil based derivative products.
- Satipharm launched sales of its reformulated proprietary capsules online in the United
Kingdom and in the European Union where local regulations allow. Brick and mortar distribution will be available shortly
with Canadian distribution to follow.
- Expansion plans at the Duncan and Lucky Lake facilities are on track as the Company
targets an annual run rate of 20,000 kg premium indoor grown flower by the end of calendar 2019.
- The Company upgraded to the OTCQX under the ticker "HRVOF" increasing its exposure to the US investment community and
improving its liquidity for investors both in Canada and the US.
"We are delighted to announce our second successive quarter of record growth for Harvest One with an increase of 123% in
revenue over the previous quarter" says Grant Froese, CEO of Harvest One. "These results reflect a
successful roll out of our recreational strategy as we continue to deliver on our agreements with all our provincial and private
partners. As we focus on operational excellence and execute on our strategy across all our divisions, we will continue to drive
revenue growth for Harvest One throughout 2019".
Harvest One's 2019 second quarter MD&A and consolidated financial statements for the quarter ended December 31, 2018, along with all previous Harvest One public filings, may be found on SEDAR at www.SEDAR.com.
About Harvest One Cannabis Inc. (TSX-V: HVT; OTCQX: HRVOF)
Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers
and patients in regulated markets around the world. The Company's range of lifestyle solutions is designed
to enhance quality of life. Shareholders have significant exposure to the entire cannabis value chain through its
wholly-owned subsidiaries; United
Greeneries, a Licensed Producer; Satipharm (medical and nutraceutical); and Dream Water Global (consumer); and a minority interest in Burb Cannabis (retail operations). For more information, please
visit www.harvestone.com.
This press release contains "forward-looking statements," which may be identified by the use of words such as, "may,"
"would," "could," "will," "likely," "expect," "anticipate," "believe," "intend," "plan," "forecast," "project," "estimate,"
"outlook" and other similar expressions, including statements regarding our growth potential, the sustainability of growth,
completion of construction at the BC and Saskatchewan expansion sites, output and production
estimates at the BC and Saskatchewan expansion sites, development of new products, demand for
our products and the medical and adult-use cannabis markets. Forward-looking statements are not a guarantee of future performance
and are based upon a number of estimates and assumptions of management in light of management's experience and perception of
trends, current conditions and expected developments, as well as other factors that management believes to be relevant and
reasonable in the circumstances, including assumptions in respect of current and future market conditions. Actual results,
performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this
press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not
guarantees of future results. Forward-looking statements involve significant risks, assumptions, uncertainties and other factors
that may cause actual future results or anticipated events to differ materially from those expressed or implied in any
forward-looking statements. Please see the heading "Risk Factors" in our 2019 second quarter MD&A which was filed on SEDAR on
February 28, 2019 for a discussion of the material risk factors that could cause actual results to
differ materially from the forward-looking information. The Company does not undertake to update any forward-looking statements
that are included herein, except in accordance with applicable securities laws.
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.
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SOURCE Harvest One Cannabis Inc.
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