Harvest Health & Recreation Inc OTCMKTS: HRVSF Reports First Quarter 2019 Financial Results


Harvest Health & Recreation Inc OTCMKTS: HRVSF is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have the largest footprint in the U.S., with rights to 230 facilities, of which 142 are retail locations and more than 1,580 employees across 17 states. Since 2011, the company has been committed to aggressively expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest’s mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world.

Harvest Health & Recreation Inc OTCMKTS: HRVSF On May 30, 2019 reported the company’s first quarter fiscal year 2019 financial results. Harvest has continued to be successful in winning licenses in non-competitive and competitive application processes throughout the country, and has made a number of significant strategic acquisitions and mergers. Harvest’s ability to combine size, scale, capital, regulatory expertise and operational excellence are paramount to its success.

Management Commentary

“By adhering to our four core initiatives: building a world class team, aggressively expanding our retail and wholesale footprint across the U.S., building, acquiring and expanding brands and distributing them across our footprint, and continuing on a path of profitable growth, we believe that we can fulfill our objective of becoming the most valuable cannabis company in the world,” said Chief Executive Officer Steve White.

Quarter End Highlights

In Q1, Harvest significantly added to its management team, including the hiring of: John Cochran, COO – Previous experience includes CEO Loudpack, President Fiji Water and CEO of Pabst Blue Ribbon, Kevin George, CMO – Previous experience includes CMO of Beam Suntory and VPGM of Unilever, and Johnnie Hernandez, Head of Integration – Previous experience includes Head of Retail Best Buy. John, Kevin and Johnnie join a team that combines deep subject matter in cannabis and CPG experience with expertise in building high growth businesses.

In early 2019, Harvest signed an agreement to offer $500 million of convertible debentures. The debentures are issuable, at Harvest’s sole discretion, in tranches of $100 million and have a 7% interest rate. The initial tranche of debentures will be convertible at the option of the holder to Subordinate Voting Shares of Harvest at a price of $15.38 per Subordinate Voting Share, and each subsequent tranche will be convertible at the option of the holder at a 15% premium to the volume weighted average price (or “VWAP”) of our stock as it trades on the Canadian Securities Exchange for the five trading day period immediately preceding the closing of the relevant tranche. Alternatively, Harvest can require that debentures be converted if the daily VWAP of our stock is greater than a 40% premium to the applicable conversion price of a tranche for any 10 consecutive trading day period.

Harvest Health & Recreation Inc OTCMKTS: HRVSF On May 23, 2019 announced that CEO Steve White will deliver the keynote address at the 6th annual Cannabis World Congress & Business Exposition, May 30th at the Javits Center in New York City. President Steve Gutterman will kick off the conference’s investor symposium on May 31st and Director of Community Outreach Marc Ross will join a panel discussion on social equity partnerships and research also on the 31st.

Steve White’s keynote, “Cannabis Investing Today and Tomorrow: Cutting through the Chatter and Focusing on Basic Financials/Growth Strategies,” will take place May 30th at 10:30 a.m. EDT. On Friday, May 31st, at 10:00 a.m. EDT, Harvest’s President, Steve Gutterman, will deliver remarks to open the investor symposium. Also on Friday, May 31st, from 10-11:30 a.m. EDT, Harvest’s Director of Community Outreach, Marc Ross will join a roundtable discussion titled “A Brand New Cannabis World,” which will discuss how cannabis entrepreneurs and investors discover new business opportunities through social equity partnerships, global licensing & expansion, and multinational research.