Harvest One Inc () (OTCMKTS:HRVOF) is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world.
Its products are sold in some 38,000 retail distribution points around the globe, including, Walmart US, CVS, Kroger, Shoppers Drug Mart, , Holland & Barrett, and Boots.
The Vancouver-based company serves as an umbrella over three wholly-owned subsidiaries: United Greeneries, which is a licensed cannabis producer; Satipharm, which develops cannabis-based health products; and Dream Water, which offers consumer sleep aids.
Harvest One has had a busy 2019 as it expands its cannabis reach and after it commenced trading on the OTCQX Best Market on January 7, 2019.
In its fiscal third quarter, the firm inked a deal to acquire 100% of the issued and outstanding common shares of Delivra Corp, as well as acquiring a majority interest in Greenbelt Greenhouse Ltd, giving the firm control when it comes to production to supply infused formulations of existing brands and new products under development.
Additionally, United Greeneries entered into a supply agreement with Canada's largest retail pharmacy chain, Shoppers Drug Mart, to supply Satipharm branded medical cannabis products.
Satipharm also inked an agreement with medicinal cannabis wholesaler and distributor Health House International Pty Ltd for distribution of CBD Gelpelltrademark Capsules throughout Australia, New Zealand and Asia.
It also re-launched European sales of its recently reformulated CBD Gelpelltrademark capsules, Dream Water entered into supply agreements with major retailers Walmart US and Kroger, received the NSF International Certified for Sporttrademark designation, while also launching its new packaging.
In early July, the group closed its acquisition Delivera, a deal which strengthened Harvest One’s health and wellness arm by adding the LivRelief product to its brand portfolio.
LivRelief is a line of natural topical creams with Delivera’s proprietary transdermal delivery system platform for conditions such as joint and muscle pain, nerve pain, varicose veins, wound healing, and sports performance.
In July, the firm revealed that GenCanna Global USA will supply it with GMP Certified CBD oil and other finished products which its wholly-owned subsidiary Satipharm will distribute in certain regulated markets in the US, Europe, and elsewhere globally. The products will be sold under the Dream Water, Satipharm, and LivRelief brands for an initial term of two years.
In addition, Winchester, Kentucky-based GenCanna will support Harvest One in the research, development, and formulation of both existing and new CBD-infused products.
CBD oils launched
In August, the group announced the launch of a new range of CBD oil throughout Europe through its wholly-owned subsidiary Satipharm Ltd.
The CBD oils - initially available in a lemon and lime flavor - will be available online throughout the continent, with bricks and mortar distribution in major retailers to follow. The group said Satipharm expects to expand the product line with more flavour varieties in the coming months.
They join Satipharm’s existing CBD gel capsules that are sold throughout 1,800 stores in the United Kingdom and Ireland, boosted by a distribution deal inked in June with Holland & Barrett, Europe's largest retailer of nutritional supplements and wellness products.
Earlier in August, Harvest had said it received strong results from a clinical trial of the CBD GelPell capsules to treat children with epilepsy.
The Phase 2 trial of children with treatment-resistant epilepsy found a median monthly seizure reduction of 82% over the 12-week treatment period when GelPell was added to patients’ current medications. More than half of patients who started treatment saw a reduction in seizure frequency of at least 50%, and two patients were seizure-free within five weeks.
On September 10, Harvest One received an amendment to its cannabis license from Health Canada that will allow it to sell cannabis oil products.
The oil sales license comes via its subsidiary United Greeneries Ltd and lets the company begin initial sales to retailers in British Columbia, Ontario, Saskatchewan and Manitoba.
The company said it has been developing products with third-party partners in anticipation of cannabis oils and edible products becoming legal in Canada later this year.
It plans to release CBD and THC-infused versions of its Dream Water and LivRelief, which promote sleep and relieve pain, respectively. Since those brands have already been established sans cannabis, Harvest One said it expects them to be an effective entrant into the cannabis product market.
Harvest One is also making inroads into the retail space as it revealed on September 19 that Burb - in which it owns a 20% stake - has been awarded its first two retail cannabis licences in Port Coquitlam, British Columbia.
Burb has been operating stores as premium apparel and cannabis culture stores since April 20 this year and it expects sales of cannabis products through its flagship store at 1502 Broadway Street in Port Coquitlam potentially as soon as September 21 this year.
Harvest One revealed In October 2018 that it had invested C$1.75 million for an approximate 20% stake in Burb, as well as the option to acquire a future majority stake in Burb.
Management moves and financials
On the management front, at the end of August, the firm announced the appointment of Aaron Wong as its chief financial officer, with immediate effect, to lead the company's finance strategy and oversee its financial operations.
The company said its interim chief financial officer, Chris Podolsky would remain in an advisory capacity to the company for an appropriate period, to ensure a smooth CFO transition.
Harvest One pointed out that Wong - a Chartered Professional Accountant with over 15 years of finance leadership experience in public and private organizations including Seaspan Corporation, Teekay Corporation, and CHC Helicopter - has been with the company since December 2017, serving as its corporate controller.
At the start of September, Harvest One also unveiled the appointment of Andy Bayfield as its chief commercial officer.
Bayfield, who will manage the company’s sales, marketing, and distribution channels globally, started his new job September 3.
His career before joining the company was focused on consumer packaged goods with internationally recognized companies such as Cadbury, Coca-Cola, and Canada Dry Mott's, a division of Keurig Dr Pepper.
Looking at its financials, for the quarter ended March 31, 2019 – released on May 30 - the firm reported revenue of C$3 million, a significant boost from C$33,000 in the same period a year ago.
The quarter showed a net loss of C$5.1 million, or C$0.03 per share, up from C$2.4 million, or C$0.02 per share in the same period a year ago.
Fourth quarter 2018/19 numbers expected to continue the revenue growth boost Expansion of Saltipharm CBD Oils line in Europe and distribution in Canada Launch of CBD and THC-infused versions of its Dream Water and LivRelief products“Securing our cannabis oil licence from Health Canada is another key step in the evolution of Harvest One as we get ready for the next stage of legalization” said Grant Froese, Harvest One’s chief executive officer.
“We are looking forward to launching infused products across all of our brands including Royal High, Satipharm, Dream Water, and LivRelief.”
