Another round of Q3 financial reports just landed as the week comes to a close, with Harvest Health & Recreation Inc. (CSE: HARV; OTCQX: HRVSF) today reporting both a revenue bump as well as a higher loss than in the previous quarter.
After reporting revenue of $26.6 million back in Q2, the company saw a sizeable increase to $33.2 million in the period ending Sept. 30.
That increase is contrasted by a net loss of $39.1 million, up sharply from the $20.6 million loss reported back in Q2.
This latest quarter saw the company directly opening or acquiring an additional 10 retail locations, bumping up to 26 operational sites as of the end of September.
Harvest has also seen a major reduction in cash on hand from this same time last year as the company has implemented various acquisitions and growth initiatives while scaling upward.
Harvest held $137 million in assets at the end of Q3, as well as liabilities of $65.2 million, with an overall earnings per share loss of $0.14.
Commenting on the numbers before a conference call with investors, Harvest Health CEO Steve White had this to say:
Harvest has seen a number of major planned acquisitions moving forward in recent months, including Falcon International Corp, CannaPharmacy Inc, and Verano Holdings LLC.
One of those acquisitions underwent a major shift yesterday, however, as Harvest just terminated the agreement to snap up CannaPharmacy’s cannabis licenses in Pennsylvania, Delaware, New Jersey, and Maryland.
Instead, the company will acquire CannaPharmacy subsidiary Franklin Labs in a $26 million deal split between cash and a promissory note. If completed, the deal will specifically give Harvest access to an extra cultivation site in Pennsylvania.
That change to the CannaPharmacy acquisition is just the latest in a string of renegotiated deals as the cannabis industry has seen major stock price declines this year, with the Cresco Labs / Origin House deal notably seeing a big shift earlier this month.
Harvest stock was trading at $2.93 this morning, having stayed in the mid to high $2 range since the beginning of October, and falling dramatically from a high $10 price back in April.
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