William Sumner
Harvest Health & Recreation, Inc. (OTCMKTS: HTHHF) today announced its financial results for the third quarter ending on September 30, 2018. The financial results pertain the operations of the Harvest Enterprises Group of Companies, which acquired Harvest Health & Recreation (then known as RockBridge Resources Inc.) in a reverse takeover last month.
Revenue increased from $10.5 million last quarter to $11.2 million; representing a year-over-year increase of 62% when compared to the same period in the previous year. Net loss for the quarter was $0.5 million; which includes $3.7 in costs and other related expenses of the company’s reverse takeover of RockBridge. Excluding the impact of biological assets, gross profit was $5.6 million, representing a year-over-year increase of 61%, and the gross profit margin was 50%. Over the last year, adjusted EBITDA rose from a loss of $0.04 million to $3.2 million.
As of September 30, 2018, the company had $28 million in cash and cash equivalents, and over the last year the company has raised approximately $290 million; $50 million in convertible debentures (which was converted into common stock at the completion of the RockBridge reverse takeover), $20 million in senior debt, and $218 million in a brokered private placement.
In addition to last month’s reverse takeover, Harvest Health also acquired San Felasco Nurseries, Inc., a medical cannabis license holder in the state of Florida, for $65.6 million. Harvest Health’s operational footprint now includes 40 cannabis licenses in 10 U.S. states. This recent acquisition will allow Harvest Health to produce, process and dispense medical cannabis and will enable the company to open as many as 25 medical cannabis dispensaries in the state.
The company also acquired CBx Enterprises LLC, a cannabis-focused intellectual property company. CBx is currently engaged in a licensing agreement with two Colorado-based cannabis companies, THChocolate, LLC and Evolutionary Holdings, LLC.
“This acquisition ensures Florida patients can finally receive the highest quality products and experience in the cannabis industry,” said Harvest CEO and founder Steve White. “Harvest is thrilled to bring its consistent, safe, fully vertically integrated approach to dozens of forthcoming stores in the Sunshine State.”
