Tag: Harvest

Harvest Health & Recreation Inc. Announces Settlement with Minority Owners of Interurban Capital Group

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PHOENIX, Nov. 20, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (“Harvest”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., is pleased to announce the settlement of its dispute with a small group of the previous owners of Interurban Capital Group (“ICG”).

On March 13, 2020, Harvest completed a merger with Interurban Capital Group, LLC for approximately US$85.8 million payable by issuance of 309,452 of Harvest’s Multiple Voting Shares, assumption of approximately $19.1 million of debt convertible into 205,594 Multiple Voting Shares and payment of an additional $9.3 million upon exercise of a call option agreement to acquire controlling interests in five Washington cannabis dispensaries or alternatively $12.4 million to acquire substantially all of the assets of these dispensaries. On April 3, 2020, Harvest commenced litigation proceedings against the Washington dispensaries and a small group of the previous owners of ICG to enforce terms of service agreements and the call option agreements.

Settlement talks resulted in a mutually agreeable resolution for all parties. In accordance with the terms of a binding settlement agreement, Harvest will cancel a total of 42,378.4 Multiple Voting Shares issued to the small group of previous owners of ICG (equivalent to 4,237,840 Subordinate Voting Shares on an as-converted basis). Harvest will also receive a $12 million secured promissory note with 7.5% interest and five-year maturity. The settlement includes cancellation of the service agreements and call option agreements for the Washington retail locations. The settlement agreement is subject to the parties entering into definitive agreements as set forth in the settlement agreement and applicable state regulatory approval.

“We are pleased to settle this dispute and move forward,” said Chief Executive Officer Steve White. “We are very excited to continue to focus on our core business operations as we execute on our plan to return to profitability.”

About Harvest Health & Recreation Inc.

Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com 

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Forward-looking Statements
This press release contains statements which constitute “forward-looking information” within the meaning of Canadian and U.S. securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Harvest with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market, (ii) the ability of Harvest to successfully achieve its business

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Harvest Health & Recreation Inc. Announces Divestiture of Arkansas Assets

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PHOENIX, Nov. 16, 2020 /PRNewswire/ — Harvest Health & Recreation Inc.  (“Harvest”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., has completed the divestiture of its dispensary and cultivation assets in Arkansas.

Natural State Wellness Dispensary, LLC and Natural State Wellness Enterprises, LLC, which own and operate a medical dispensary and cultivation facility, were sold on Friday, November 13, 2020. The total purchase price paid by the buyer was $25 million. Following repayment of approximately $1.9 million in loans associated with the assets, the portion of net proceeds received by Harvest for its interests totaled approximately $12.9 million in cash. Harvest retains ownership of the real estate for the dispensary and cultivation facilities.     

“We are pleased to have completed this divestiture as part of our strategic plan to streamline our business and focus on core markets,” said Chief Executive Officer Steve White.  “The additional cash on our balance sheet adds flexibility at a time when we are pursuing growth opportunities such as recreational sales in Arizona.”  

Following the completion of this divestiture, Harvest maintains its 2020 guidance of greater than $225 million in revenue.

About Harvest Health & Recreation Inc.

Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com 

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Forward-looking Statements
This press release contains statements which constitute “forward-looking information” within the meaning of Canadian and U.S. securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Harvest with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market, (ii) the ability of Harvest to successfully achieve its business objectives, (iii) plans for expansion of Harvest, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects Harvest management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Harvest believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined Company. Among the key

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Harvest Health & Recreation Inc. Reports Third Quarter 2020 Financial Results

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– Third quarter revenue was $61.6 million, up 86% from the third quarter 2019 and 11% sequentially

– Third quarter adjusted EBITDA was $10.5 million, compared to $4.1 million in the second quarter of 2020

– 2020 revenue target increased to greater than $225 million, up from $215-220 million

PHOENIX, Nov. 10, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (“Harvest” or the “Company”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today reported its financial and operating results for the third quarter 2020. All financial information is provided in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results

  • Total revenue in the third quarter was $61.6 million, an increase of 86% from $33.2 million in the third quarter of 2019, and up 11% compared to $55.7 million in the second quarter of 2020.
  • Gross profit excluding biological adjustments in the third quarter was $28.7 million, compared to $11.6 million in the third quarter of 2019, and $23.4 million in the second quarter of 2020.
  • Gross profit margin excluding biological adjustments in the third quarter was 46.6%, compared to 35.0% in the third quarter of 2019, and 42.1% in the second quarter of 2020.
  • Net loss was $2.1 million for the third quarter, compared to a net loss of $39.1 million in the third quarter of 2019 and $18.3 million for the second quarter 2020.
  • Adjusted EBITDA excluding biological adjustments in the third quarter was $10.5 million, compared to ($10.9) million in the third quarter of 2019 and $4.1 million in the second quarter of 2020.

Please see the supplemental information regarding unaudited results and Non-IFRS Financial Measures at the end of this press release.

Third Quarter 2020 Business Highlights

  • During the third quarter of 2020, Harvest opened one new dispensary in Phoenix, Arizona and one new dispensary in Cranberry Township, Pennsylvania.
  • As of September 30, 2020, Harvest owned, operated, or managed 37 retail locations in seven states, including 15 open dispensaries in Arizona. Harvest owned and operated dispensaries exclude retail locations serviced through Interurban.

Subsequent Events

  • Subsequent to September 30, 2020, Harvest opened two retail locations in Camp Hill and King of Prussia, Pennsylvania.
  • On October 2, 2020, Harvest terminated the agreement to sell two California retail assets to Hightimes Holdings for $6 million in preferred stock.
  • On October 28, 2020, Harvest completed a bought deal financing raising gross proceeds of approximately $32.4 million including the overallotment option. Units sold in the offering were priced at Cd$2.26 per unit and included one subordinate voting share and one-half warrant. Each warrant has an exercise price of Cd$3.05 and duration of 30 months.
  • On October 30, 2020, Harvest completed the purchase and license transfer of THChocolate, LLC, including cannabis manufacturing licenses in Colorado. The consideration paid was immaterial.
  • On November 2, 2020, Harvest announced a settlement agreement with Devine Holdings. Under the terms of
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Harvest Health & Recreation, Inc. (HRVSF) CEO Steven White on Q3 2020 Results – Earnings Call Transcript

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Harvest Health & Recreation, Inc. (OTCQX:HRVSF) Q3 2020 Earnings Conference Call November 10, 2020 5:00 PM ET

Company Participants

Christine Hersey – Director, IR

Steven White – Founder, CEO & Director

Deborah Keeley – CFO

Conference Call Participants

Kenric Tyghe – ATB Capital Markets

Aaron Grey – Alliance Global Partners

Graeme Kreindler – Eight Capital

Andrew Partheniou – Stifel Nicolaus

Pablo Zuanic – Cantor Fitzgerald & Co.

Matt Bottomley – Canaccord Genuity

Russell Stanley – Beacon Securities Limited

Operator

Good afternoon, and welcome to the Harvest Health & Recreation conference call to review third quarter 2020 financial and operating results and discuss the company’s performance outlook. [Operator Instructions].

I would now like to turn the conference over to your host, Christine Hersey, Director of Investor Relations for Harvest. Thank you. You may begin.

Christine Hersey

Thank you. Good afternoon, everyone, and welcome to Harvest’s Third Quarter 2020 Earnings Call. On today’s call are Founder and Chief Executive Officer, Steve White; and Chief Financial Officer, Deborah Keeley. Earlier today, we issued a press release announcing our results for the quarter ended September 30, 2020. The press release and a PowerPoint presentation are available on the company’s website and filed with the Canadian Securities Exchange and SEDAR.

Before we begin, I’d like to remind you that the comments on today’s call will include forward-looking statements which, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast in such statements.

These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information about the material factors and assumptions forming the basis of the forward-looking statements and risk factors can be found in the company’s filings and press releases with the Canadian Securities Exchange and SEDAR.

During today’s call, Harvest will refer to certain non-IFRS measures that do not have any standardized meaning prescribed by IFRS, such as EBITDA and adjusted EBITDA, which are defined in the earnings press release we issued earlier today. Reconciliation to IFRS measures are contained in the press release and our filings. Please note, all financial information is provided in U.S. dollars unless otherwise indicated.

I’ll now turn the call over to Steve White, Harvest’s Founder and Chief Executive Officer. Please go ahead.

Steven White

Thank you, Christine. Good afternoon, everyone, and thank you for joining us. I appreciate your continued support and interest in Harvest and the opportunity to provide you with an update on our organization. Given the significance of last week’s election results and the potential impacts to both the industry and to Harvest, I’m

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Harvest Health & Recreation Shoots 7% Higher After Hours on Q3 Results

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Harvest Health & Recreation (OTC:HRVSF) had a good day on the stock exchange Tuesday. The happy feeling continued after the company released its latest quarterly results following market close.

For its third quarter of fiscal 2020, the marijuana company took in revenue of $61.6 million — 11% higher than in the previous quarter, and an 86% improvement on a year-over-year basis. On the bottom line, Harvest Health managed to trim its net loss to $2.1 million ($0.01 per share) from the previous quarter’s $18.3 million, and from the Q3 2019 result of $39.1 million.

Marijuana plant with the sun behind it.

Image source: Getty Images.

Both headline numbers came in comfortably above average analyst estimates. Prognosticators had collectively expected revenue of $59.3 million and a per-share loss of $0.06.

The company’s top line was helped by the opening of two new marijuana dispensaries, one in its home state of Arizona and the other in Pennsylvania.

“Our third-quarter results demonstrate further progress toward our primary goal of returning to profitability through revenue growth, cost controls, and investments in our core markets of Arizona, Florida, Maryland, and Pennsylvania,” CEO Steve White said.

“We are focused on preparing for recreational cannabis in Arizona in 2021 and continuing to build on this positive momentum as we execute on our plan,” he added.

Along with voters in four other states, Arizonans opted on Election Day to legalize recreational marijuana. The consumption and sale of medical product had already been sanctioned.

On the back of its revenue and bottom-line improvements, as well as that Arizona vote, Harvest raised its 2020 revenue guidance. The company now expects to take in more than $225 million, up from the previous forecast of $215 million to $220 million. It did not provide any profitability estimates.

Harvest Health had a fine Tuesday overall, closing more than 7% higher, in contrast to the decline of the S&P 500 index.

Source Article …

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Harvest Health & Recreation Inc (Sub Voting) | C.HARV Stock Message Board & Forum

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RE:RE:RE:Harvest Health Increases Bought Deal To C$40 Million

Company: Harborside

Symbol: HBOR

 

Last: $1.85

Low: $1.78

High: $2.16

 

Harborside: Continued Revenue Growth & Expansion

 

Q3 2020: Exceeding 18.5 million (Preliminary)

Q2 2020: 16.1 million

Q1 2020: 14.6 million

 

You can note above that based on the quarterly figures that company revenue is going up at a brisk pace.

 

Over the past couple of weeks HBOR announced two updates that will further increase company revenues.  The first piece of news is that HBOR is opening a new dispensary with a starting majority stake with the option to buy full ownership.  The dispensary will be located in the iconic Aight-Ashbury district in San Francisco.  The area is know for its huge hippie gatherings and demonstrations during the Vietnam war.

 

https://www.prnewswire.com/news-releases/harborside-inc-to-acquire-ownership-in-a-san-francisco-dispensary-in-the-historic-haight-ashbury-district-301154746.html

 

The next piece of news released last Friday is that they will start selling their own branded clowns at all dispensaries and the expansion of the farm by 50%.  The work should be completed by the end of Q1 2021. 

 

https://ceo.ca/@newswire/harborside-inc-announces-cultivation-facility-upgrades

 

Keep in mind that we currently have 22 million shares outstanding giving us that crazy share price growth these days.  Volume is going up.  The last 2 days alone we have over 630,000 traded when we normally have 40,000 shares a day.  We’ve also had many days with daily volume of approximately 75,000 shares.

 

THE NEW TARGET PRICE IS $3.25 (APRIL 2021)

 

This new target is based on all the information above, Analyst coverage information and forward looking catalysts.  For more information, read tomorrow night’s discussion.

Source Article …

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Harvest Health & Recreation Inc. Announces Settlement With Devine Hunter Inc.

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Harvest Health & Recreation Inc. Announces Settlement With Devine Hunter Inc.

Harvest Adds Three Licenses in Arizona Reaching a Total of 18

PHOENIX, Nov. 2, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (“Harvest”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., is pleased to announce the settlement of its dispute with Devine Hunter Inc. (“Devine”) and its affiliates on mutually agreeable terms. 



On February 12, 2019, Harvest announced an agreement to acquire six licenses in Arizona from Devine for undisclosed terms.  In March 2020, Harvest commenced litigation proceedings against Devine to compel the closing of the pending acquisition as defined in the original binding agreement.  Settlement talks resulted in a mutually agreeable resolution for both parties.  In accordance with the terms of the settlement, Harvest will acquire three vertical medical cannabis licenses in Arizona for consideration which includes the repayment by Devine Holdings of an outstanding $10.45 million receivable owed to Harvest concurrently with the license acquisition.  No new capital including equity, debt or cash was paid or issued by Harvest as part of the settlement or license acquisition.  In addition to the three licenses, Harvest acquired a right of first refusal for four additional vertical medical cannabis licenses in Arizona.   

“We are pleased to settle this dispute without payment of any additional capital and we are very excited to focus on bringing three new locations online as soon as practicable,” said Chief Executive Officer Steve White.  “We look forward to expanding our retail presence and reaching more patients in our home state of Arizona.” 

Harvest Operations in Arizona

Harvest currently operates 15 medical dispensaries supported by cultivation facilities in Camp Verde, El Mirage, Phoenix, and Willcox and processing facilities in Flagstaff and Phoenix. 

About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com 

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Forward-looking Statements
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Harvest with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market, (ii) the ability of the Company to successfully achieve its business objectives, (iii) plans for expansion of Harvest, and (iv) expectations for other economic, business, and/or competitive factors.

Investors are cautioned

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Harvest Health & Recreation Inc. Announces C$30,000,000 Million Bought Deal Financing | 2020-10-21 | Press Releases

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** THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.**

PHOENIX, Oct. 21, 2020 (GLOBE NEWSWIRE) — Harvest Health & Recreation Inc. (“Harvest” or the “Company”) ( CSE: HARV ), a vertically integrated cannabis company and multi-state operator in the U.S., is pleased to announce that is has entered into an agreement pursuant to which Eight Capital, as lead agent and bookrunner, together with a syndicate of underwriters (collectively, the “ Underwriters ”), will purchase on a “bought deal” basis 13,274,400 units of the Company (“the Units ”) at a price of $2.26 per Unit (the “ Offering Price ) for aggregate gross proceeds to Harvest of $30,000,144 (the “ Offering ”). (All figures are in Canadian dollars unless otherwise stated.)

Each Unit shall consist of one common share of the Company (each, a “ Unit Share ”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “ Warrant ”). Each Warrant shall be exercisable into one common share of the Company at an exercise price of $3.05 per common share for a period of 30 months from the Closing Date (as defined below) (the “ Warrant Shares ” or together with the Unit Shares, “ Shares ”). If the daily volume weighted average trading price of the common shares of the Company on the Canadian Securities Exchange (the “ CSE ”) for any 10 consecutive days equals or exceeds $4.97, the Company may, upon providing written notice to the holders of the Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.

The Company has granted the Underwriters an option, exercisable, in whole or in part, at any time not later than the 30 th day following the closing of the Offering, to purchase up to an additional 15% of the Offering at the Offering Price for market stabilization purposes and to cover over-allotments, if any (the “ Over-Allotment Option ”). If the Over-Allotment Option is exercised in full, the total gross proceeds of the Offering will be approximately $34,500,000.

The Units will be offered by way of (i) a prospectus supplement (the “ Prospectus Supplement ”) to Harvest’s short form base shelf prospectus dated June 24, 2020, of which the Prospectus Supplement will be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada; (ii) in the United States by way of private placement pursuant to the exemption from registration provided for under Rule 144A of the United States Securities Act of 1933, as amended; and (iii) in jurisdictions outside of Canada and the United States as are agreed to by the Company and the Underwriters on a private placement or equivalent basis.

The net proceeds of the Offering are expected to be used for working capital and general corporate purposes.

The Offering

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