|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||4.6500 - 5.0000|
|52 Week Range||3.6000 - 10.8500|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Anyone who closely follows the cannabis industry knows that it is experiencing unrivaled growth. The year is set to end with a 31.7% increase in annual legal cannabis sales, bolstered by new regulation, ...
Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., signed a new state-approved management services agreement on September 9, 2019 with a Maryland dispensary, Your Farmacy-CWS, LLC (“Your Farmacy”), that will give Harvest the right to operate the medical retailer. The 3,120 square-foot medical dispensary in Lutherville-Timonium, MD will be transitioned to operate as a Harvest House of Cannabis store, known for best-in-class operations and industry-setting standards for cannabis products with a focus on bettering the community. With this new agreement, Harvest will expand its presence in Maryland and further establish the company’s position as a leading medical cannabis operator on the east coast, in addition to its considerable footprint in the western United States.
Market research and data analytics firm Prohibition Partners has released its first North American Cannabis Report. In the 134-page paper, the firm analyzes the current state of the cannabis industry in Canada and the United States to draw key insights into the industry’s future in the region. The firm is estimating that by 2024, the continent's cannabis market will be worth $47.3 Billion.
Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced it will now offer new premium-quality products from Cookies, a leading lifestyle and cannabis brand in North America, at select Harvest medical dispensaries across Arizona. Starting August 30, the new Cookies’ products, produced in Arizona and brought to market by Harvest, will be available in limited quantities at select Harvest House of Cannabis stores, known for top operational standards, best-in-class experiences and products, and expert on-site staff delivering trusted information to patients across the market. "Pairing Cookies’ products with our leading cultivation, manufacturing and retail teams will allow Harvest to further improve patient access to premium and high-quality medicinal products,” said Harvest Executive Chairman Jason Vedadi.
PARAMUS, N.J., Aug. 21, 2019 /PRNewswire/ -- Steve White, CEO of Harvest Health & Recreation, will deliver a Keynote Address, entitled: "Doing Well by Doing Good," at the 6th Annual Cannabis World Congress & Business Exposition (CWCBExpo) taking place September 26-28 at the Los Angeles Convention Center in Los Angeles, CA. Harvest Health and Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) ("Harvest"), is a vertically-integrated cannabis company with one of the largest and deepest footprints in the U.S., that expects to have the rights to operate in more cannabis facilities and more licenses than any other company in the U.S., including more than 210 facilities across 18 states and territories following the closings of recently announced definitive agreements to acquire Verano Holdings, CannaPharmacy, Falcon Holdings and Devine Hunter, Inc.
Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced it has signed ONE Community’s UNITY Pledge, a concerted effort by Arizona businesses and individuals to advance workplace equity and equal treatment in housing and public accommodations for Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ) individuals and their allies. Harvest is the first large cannabis company to sign the LGBTQ equality effort created by ONE Community, a member-based coalition of Arizona businesses and individuals dedicated to growing Arizona’s economy and improving the community.
The once over hyped cannabis sector is now under pressure as results from the Canadian LPs fail to meet forecasts and the U.S. struggles to approve cannabis at the federal level. Investors need to finally move beyond the hype and separate the companies like Harvest Health & Recreation (HRVSF) that have a reasonable path to profits with a catalyst to higher stock prices.Still WaitingHarvest Health is now down 50% from the highs above $10. Most of the U.S. multi-state operators (MSOs) are down similar amounts this year as the cannabis trade falters in both Canada and the U.S. with one big difference. The American companies trade at much more reasonable market valuations.For Harvest Health and the other big MSOs like Curaleaf (CURLF) and Cresco Labs (CRLBF), the companies are still waiting to close large scale deals announced earlier this year. Without digging into the details, Harvest Health on the surface still looks like a rather small cannabis player with Q2 revenues of only $26.6 million and a market valuation of $1.5 billion.The company still looks like a minor player in the industry with Canadian companies reporting revenues topping C$100 million and constantly discussing big global expansion plans. The U.S. players face the lack of Federal cannabis approval that has made no progress during the summer months. The lack of approval has killed a major catalyst in uplisting the stocks in the major U.S. stock exchanges.More importantly, none of the big cannabis deals in the U.S. have closed leading to more market uncertainty. The market hates uncertainty and a U.S. MSO is full of uncertainty right now.OpportunityHarvest Health reported Q2 proforma revenues of $78 million or an amount that would make the relatively unknown U.S. MSO the size of Aurora Cannabis (ACB) and far larger than the disaster at Canopy Growth (CGC). The problem is that the market is impatient in waiting for several large deals to close in the U.S. MSO sector.Ultimately, the patient investor will be rewarded with Harvest Health closes deals for Verano, Falcon and CannaPharmacy this year. The company will have 494 million shares outstanding for a market valuation of only $2.5 billion.An investor buying into the stock on this substantial weakness gets a cannabis company with projections of reaching 120+ dispensaries in 15 states by the end of 2020. The key figure is the revenue projection for sales reaching $900 million to $1 billion in 2020. Not many stocks in the sector trade at 2.5x ’20 sales estimates. Especially noteworthy is how Canopy Growth had a target for only C$1 billion in annual sales or $750 million with a market cap still up at $9.5 billion.These sales projections come without much in the way of full financial reports including gross profits and operating expenses leaving investors to prefer taking a cautionary view until the deals close. The only forecast is for Harvest Health reaching a 2020 EBITDA goal of 30% to 35%, but an investor has very limited visibility into those targets.TakeawayThe key investor takeaway is that Harvest Health & Recreation is an overlooked U.S. MSO. The company faces some risk due to the inability to close pending acquisitions, though the market appears to be extrapolating the risks too far. Use the weakness to snap up a leading cannabis stock at 2.5x ’20 sales projections.Disclosure: No position.To get TipRanks' stock analysis report on Harvest Health, click here
The dispute between Harvest Health & Recreation, Inc. (CSE:HARV)(OTC: HRVSF) and the state of Pennsylvania over licensing has reached an agreement, with Harvest no longer pursuing two affiliate companies, Harvest of Northwest PA, LLC and Harvest of North Central PA, LLC. Harvest has recently faced licensing issues in Ohio as well. Harvest dropping its two LLCs results in two already constructed facilities in New Castle and Shamokin not moving forward.
Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today released the following response to the Harvest entities’ agreement with the Pennsylvania Department of Health. On August 16th, after concluding negotiations with the Pennsylvania Department of Health, two of our affiliate companies, Harvest of Northwest PA, LLC and Harvest of North Central PA, LLC, will no longer pursue the permits granted to them. Instead, the remaining Harvest affiliates will focus on the five permits they have been granted, which allows them to open up to 15 dispensaries across the Commonwealth.
Harvest Health & Recreation, Inc. (CSE: HARV) (OTC: HRVSF ) generated $26.6 million in total revenue for its second quarter . The sum represents a 39% increase. Gross profits more than doubled compared ...
PHOENIX-- -- Total revenue for the second quarter was $26.6 million, up 39% from the first quarter 2019 Adjusted EBITDA for the second quarter totaled million Harvest Health & Recreation, Inc. , vertically-integrated cannabis company with one of the largest and deepest footprints in the U.S., today reported the company’s second quarter fiscal year 2019 financial results. Harvest has continued to be ...
Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced the acquisition of Grover Beach dispensary 805 Beach Breaks, serving the San Luis Obispo, Santa Barbara, Ventura and Monterey County markets. The dispensary marks the tenth location in California for which Harvest has rights.
Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced the opening of its second North Dakota compassion center, Harvest of Bismarck, for qualifying patients and caregivers. The first location, Harvest of Williston, opened last month. “We are excited to build upon our presence in North Dakota, just three weeks after the opening of our first compassion center in the state, Harvest of Williston, and to continue to increase cannabis accessibility for those seeking high-quality and trusted experiences,” said Harvest CEO Steve White.
The loan is intended to fund rapid expansion as Harvest continues to build and acquire assets across the cannabis supply chain, both in retail and wholesale verticals across the U.S. Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 -- Click here to learn more! The loan will be made available to Harvest in three tranches of $75 million each with similar terms and an 8% annual interest rate.
Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (the “Company”), a vertically integrated cannabis corporation organized under the laws of British Columbia, Canada and with one of the largest and deepest footprints in the U.S., today announced that the Board of Directors (“Board”) has given consent to increase the company’s internal foreign private issuer (“FPI”) threshold from 40.00% to 49.99%, in compliance with the Company’s Articles. Currently, Harvest is an FPI in the United States, meaning less than 50.00% of shares are held of record, directly or indirectly, by residents of the United States.
Due to rapid expansion, Harvest Health & Recreation (HRVSF) is going the path of borrowing money from an investment fund. The asset-back financing adds risk to a growth story that is usually best fueled via equity offerings.Need For CashHarvest Health is in the midst of multiple acquisitions that will transform the U.S. multi-state operator (MSO) into a company with a revenue target approaching $1 billion in 2020. As a comparison, the company only generated 2018 revenues of $47 million.Harvest Health only had an adjusted EBITDA loss of $4.7 million in Q1 so operations aren’t burning a lot of cash. Lots of questions exist on where the financials will stand once all of the deals for Verano, Falcon, Devine and CannaPharmacy are closed. In addition, the company is in various stages of going from 15 retail locations at the end of Q1 to a plan that exceeds 120 dispensaries. All of these new facilities require cash to fund.When the company closed Q1 in March, Harvest Health had a cash balance of only $116 million with total debt of $29 million. A company in the retail sector looking to reach $1 billion in annual sales typically needs access to more cash than a net cash balance of $87 million to fuel expansion.The Verano deal at an initial price of $850 million is in all stock so the major acquisition doesn’t require cash. The company has several other deals in various stages of closing. Even with the stock down to $5, Harvest Health would have a market valuation approaching $3 billion once all the deals are closed.The company could easily complete a secondary for up to $300 million that only dilutes shareholders by 10%. The timing isn’t ideal with the stock down at the lows, but costly interest expenses and added risks of having to repay debts are less ideal.Questionable TermsHarvest Health has taken several paths to raise money via debt. The company recently signed a deal for convertible debt of up to $500 million. On May 13, the company closed on the first tranche of the 7% unsecured convertible debt to raise gross proceeds of $100 million.The debt has a maturity date of May 9, 2022 and a conversion price of $11.42. In addition, the debt holders received 3,502,666 warrants with an exercise price of C$18.17.Now, the company has signed a deal with Torian Capital Partners for a secured term loan of up to $225 million via multiple tranches. The loan is an asset-backed financing plan bearing an interest rate of 8% with an additional cost of warrants.The issue here is the complication and costs of debt versus just issuing equity whether ideal at the current price or not. Just $300 million in debt starts costing the company over $20 million in annual interest costs and the proposed amounts would more than double these interest costs.TakeawayThe key investor takeaway is that Harvest Health has a plan to generate substantial growth via acquisitions and organic growth, but the timing of generating substantial profits is unknown. Such unproven business models are best funded via equity that has no additional covenants and costs.The stock is appealing down at $5 but investors need to keep a keen eye on funding costs going forward.Compass Point analyst Rommel Dionisio recently initiated coverage on Harvest Health stock with a Buy rating and $11.00 price target, which implies about 100% upside from current levels. (To watch Dionisio's track record, click here)
Harvest Health & Recreation, Inc. (CSE: HARV) (OTC: HRVSF) said Wednesday it will acquire Phoenix operator Urban Greenhouse. The company will expand its footprint across Arizona by taking Urban Greenhouse operations, whose dispensary will operate under Harvest’s House of Cannabis stores. “As we grow to be the most valuable cannabis company, it is imperative that we continue efforts in key cannabis markets including our home state of Arizona to bring the community greater economic development and provide consumers easier access to high-quality retail experiences and products,” said Harvest Executive Chairman Jason Vedadi.
In the cannabis space, diversity is often regarded as a particularly pressing need as a result of the adverse effect of the War on Drugs. The hurdles are numerous and include the country's private prison system and a lack of capital, according to industry contacts Benzinga spoke with. Despite the challenges, some do see recent positive activity in the fight to make the employees staffing the growing legal cannabis sector in the U.S. more reflective of the communities that cannabis companies serve.