With stock prices having severely declined over the last six months and quarterly reports frequently showing losses or only modest earnings, the cannabis industry is seeing a wave of share lock up extensions.
Harvest Health & Recreation Inc. (CSE: HARV; OTCQX: HRVSF) is the latest to announce an extension to a previous share lock up plan as the company seeks to keep investor confidence while looking towards long-term value.
Founding shareholders holding 19.4 million subordinate voting shares will continue their lock up plan another six months beyond the original terms through a voluntarily increased schedule.
The lock up on those shares is now scheduled to end on May 14 of 2020 after being initially issued in November of 2018.
This move follows in the footsteps of Curaleaf Holdings Inc. (CSE: CURA; OTCQX: CURLF), which also proposed an amended lock up agreement last month for major shareholders to be released in a staggered and extended format.
In other Harvest Health news, the company opened its fourth Pennsylvania dispensary earlier this week. After the Johnstown location opened its doors on Tuesday, Chief Executive Officer Steve White commented:
Following a lung disease health scare in the U.S. frequently tied to non-licensed THC products, Harvest also launched the CannApprove testing and safety protocols. Those formalized protocols are now enacted for all vape-related products and take place from seed to shelf.
Unlike most other cannabis companies in the North American industry, Harvest’s stock has shown signs of life after the freefall from earlier this spring. Trading at $2.81 this morning, the company’s stock is actually priced higher today than it was a month ago, although it has lost most of its value since trading around $10 in April of 2019.
Following the release of quarterly numbers from several other major licensed producers, Harvest Health & Recreation is due to officially announce Q3 2019 earnings on Nov.20.