Arizona-based Harvest Health & Recreation’s revenue more than doubled during its fourth quarter and fiscal 2018 as the multistate marijuana company continued to expand its retail and wholesale footprint and predicted further expansion this year through acquisitions.
Despite the sales gains, the company recorded a net loss for the quarter of $71.1 million – which included a noncash fair-value charge of $50.7 million tied to convertible debt that was converted into equity during the year.
Harvest eked out a profit of $1.3 million a year earlier.
Harvest reported revenue of $16.9 million in the fourth quarter ended Dec. 31, 2018 – up 135% from the fourth quarter in 2017, when the company posted $7.2 million in revenue, according to a news release.
Full-year revenue rang in at $46.9 million – up 106% from 2017 revenue of $22.8 million.
The company has been on a shopping spree:
- In March, Harvest announced the $850 million purchase of Verano Holdings of Chicago.
- This month, the company unveiled a plan to acquire CannaPharmacy, a vertically integrated marijuana company operating in four Northeastern states.
The moves expand Harvest’s reach to 16 states with licenses for up to 123 retail dispensaries.
The company trades on the Canadian Securities Exchange under the ticker symbol HARV.
Lisa Bernard-Kuhn can be reached at email@example.com
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