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Looking to buy stock in Harvest Health? Here’s what you need to know about the company and how to buy its stock.
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Introduction
Harvest Health & Recreation Inc. operates as a multi-state cannabis operator in the United States. The company owns and operates retail dispensaries, cultivation sites, and manufacturing facilities. As of March 2020, Harvest Health operated in Arizona, California, Colorado, Florida, Maryland, Massachusetts, Nevada, Ohio, Pennsylvania, and Puerto Rico. The company was founded in 2011 and is headquartered in Tempe, Arizona.
To common shareholders of record on March 27th 2020 the Company declared a quarterly dividend of $0.01 per share. The dividend will be paid on April 17th 2020 to shareholders of record on the close of business on April 3rd 2020. JPMorgan Chase & Co. is acting as depositary and paying agent for the dividend.
What is Harvest Health?
Harvest Health & Recreation, Inc. is a vertically integrated cannabis company with one of the largest footprints in the U.S. The Company is a multi-state operator (MSO) with licenses in Arizona, Arkansas, California, Colorado, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, Ohio and Pennsylvania.
The Business Model
Harvest Health & Recreation Inc. is a vertically integrated cannabis company with one of the largest footprints in the U.S. The company sells medical and recreational marijuana products in Arizona, Arkansas, California, Colorado, Florida, Illinois, Maryland, Michigan, Missouri, Nevada, North Dakota, Pennsylvania, and Ohio. It also has operations in Puerto Rico and Canada. The company has a market cap of $3.4 billion.
The company’s Brazilian subsidiary Apostles Biotech Corp recently received a license to cultivate and manufacture medical cannabis products. This gives Harvest Health a foothold in the rapidly growing South American market. harvest is also expanding its retail footprint through acquisitions. In December 2018, it acquired Verano Holdings LLC, one of the largest private retail operators in Illinois. The company plans to open 200 dispensaries across the U.S. by the end of 2020.
Harvest Health stock trades on the Canadian Securities Exchange under the ticker symbol “HVR” and on the over-the-counter market in the United States under the ticker symbol “HRVSF”.
The Products
Harvest Health & Recreation Inc (CNSX:HARV) is a publicly traded company that produces and sells cannabis products in the United States. The company’s products are available in retail stores and online.
The company’s product line includes flowers, edibles, concentrates, topicals, and CBD products. Harvest Health’s products are available in a variety of forms, such as tablets, capsules, oils, tinctures, vape cartridges, and pre-rolled joints.
The Management Team
The current CEO of Harvest Health & Recreation is Steve White, who has held the position since April 2019. Prior to joining Harvest, Mr. White served as the CEO of Arizona-based tryke Companies, a provider of cannabis production and dispensaries. He has also held leadership roles at various technology and healthcare companies. The current CFO is Ed Landers, who joined the company in September 2018. Prior to joining Harvest, Mr. Landers served as CFO of Medical Marijuana, Inc., a publicly traded company on the OTC markets.
The Competition
Harvest Health is a publicly traded company with a market capitalization of over $2 billion. The company is one of the largest vertically integrated multistate cannabis operators in the United States.
Harvest Health has been growing rapidly through acquisitions and expansion into new markets. The company has acquired 14 businesses since 2017 and has plans to enter into additional markets in the coming years.
The competition for Harvest Health is fierce, as there are many large companies vying for market share in the rapidly growing cannabis industry. Some of the other companies that operate in this space include Aurora Cannabis, Canopy Growth, Aphria, and Tilray.
The Market Opportunity
Harvest Health & Recreation Inc. (CNSX:HARV) (OTCMKTS:HRVSF) is one of the largest vertically integrated multi-state cannabis operators in the United States. Headquartered in Tempe, Arizona, Harvest Health has established operations in 11 states, including 135 dispensaries and 30 cultivation and production facilities.
The company recently completed a merger with Verano Holdings LLC, which added Illinois, Maryland, Nevada and Pennsylvania to its portfolio of state markets. With the addition of these new markets, Harvest now has a presence in 19 states that have legalized cannabis for either medical or adult-use purposes.
The Financials
Harvest Health & Recreation Inc. (CNSX:HARV) (OTCQX:HRVSF) is a vertically integrated cannabis company with one of the largest footprints in the U.S. The company operates in 22 states, has 207 locations and plans to have 230 locations by the end of 2019.
Harvest Health went public on the Canadian Securities Exchange in November 2018 at a price of C$1.80 per share and is currently trading at around C$4.50, giving it a market capitalization of C$2.1 billion. In June 2019, Harvest Health completed a bought deal financing that raised gross proceeds of C$346 million through the sale of 19,100,000 subscription receipts at a price of C$18.125 per receipt.
The company has been busy on the acquisition front, most recently announcing the pending acquisitions of Verdes Foundation and PhytoLogica, which are expected to close in late 2019 or early 2020 subject to customary conditions and regulatory approvals. These acquisitions will add two high-quality cultivation facilities in Arizona and Nevada, respectively, as well as expand Harvest Health’s retail reach in Arizona
Risks and Concerns
When examining HHSEF stock, investors must weigh the company’s strong growth prospects against the sector’s challenges and the company’s significant debt load.
The Canadian cannabis industry has been grappling with a number of issues in recent months, including regulatory changes, supply shortages and rampant consumer spending. These problems have put pressure on the stock prices of even the most well-adjusted companies in the space.
As a result, Harvest Health & Recreation Inc (CNSX:HARV) (OTCQX:HRVRF) has seen its share price fall by over 25% since March. The company is still up significantly from its 52-week low of C$3.54, but Harvest Health stock is well below its 52-week high of C$16.20.
Despite the recent pullback, Harvest Health remains one of the most intriguing growth stories in the Canadian cannabis space. The company is one of the largest vertically integrated operators in the industry and has operations in 11 states across the United States. In addition, Harvest Health recently completed a transformational merger with Verano Holdings LLC, which will give it a significant presence in Illinois, Maryland and Nevada.
Conclusion
If you are looking for a company that is doing innovative work in the cannabis industry and has a strong presence in the US market, Harvest Health & Recreation Inc (CSE: HARV) (OTCQX: HRVSF) is a good choice. The company is vertically integrated and has a diversified product portfolio, which gives it an edge over its competitors. It also has a strong management team with a lot of experience in the industry. The stock is expensive, but if you are bullish on the industry, it is worth considering.
