Harvest Health & Recreation Inc. (OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today reported its financial and operating results for the fourth quarter ended December 31, 2020, as follows:

Q4 Financial Highlights

(Unless otherwise stated, the results are in American dollars - to convert to other currencies go here - and compared to the previous quarter.)

• Revenue: increased 13% to $69.9M
• Gross Profit: increased 9% to $31.3M
• Gross Margin: decreased to 44.8% from 46.6%
• Net Loss: increased 25.2% to $(7.4)M
• Adj. EBITDA: declined 21% to $9.1M
• Gen. & Admin. Exp.: increased 22% to $25.3M
• Sales/Mktg. Exp.: doubled to $1.6M
• Compensation: increased 215% to $4.1M

Q4 Operational Highlights

• opened two new dispensaries in Camp Hill and King of Prussia, Pennsylvania
• terminated the agreement to sell two California retail assets to Hightimes Holdings 
• raised gross proceeds of approximately $32.4 million, including the overallotment option, in a bought deal financing
• completed the purchase and license transfer of THChocolate, LLC, including cannabis manufacturing licenses in Colorado. The consideration paid was immaterial.
• acquired three vertical medical cannabis licenses in Arizona from Devine Holdings in exchange for the repayment by Devine Holdings of an outstanding $10.45 million receivable owed to Harvest concurrently with the license acquisition
• divested its ownership in dispensary and cultivation assets in Arkansas, with net cash proceeds to Harvest of $12.9 million.
• settled a legal dispute with minority owners of Interurban Capital Group in which it canceled a total of 42,378.4 Multiple Voting Shares and received a $12 million secured promissory note with 7.5% interest and five-year maturity and cancelled all service agreements and call option agreements for Washington retail locations
• As of December 31, 2020, Harvest owned, operated, or managed 38 retail locations in six states, including 15 open dispensaries in Arizona.

2121 Outlook

• a full year 2021 revenue target of $380 million
• at least $87 million in revenue expected in Q1
• expect gross margins to trend upwards overall, with some fluctuations from quarter to quarter.

Stock Performance

While the Harvest Health stock price is UP 46.3% YTD it went DOWN 16.8% in March as illustrated in the chart below:

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