E Harvest Health Q4 Financials

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.
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