A potentially tasty pullback is underway in shares of Harvest Health & Recreation Inc (OTCMKTS:HRVSF). The stock has slid about 25% since we posted a warning foretelling that it might run into credibility-related struggles. But the action on the chart suggests some robust demand that shouldn’t go overlooked. It still operates as a growing player in the explosive Canadian cannabis space, where pullbacks often become important opportunities.
To make matters more interesting, the company just announced that it has closed the first tranche of its previously announced brokered private placement of 7% unsecured convertible debentures of the Company, at a price of US$1,000 per Convertible Debenture for gross proceeds of US$100,000,000. According to the release, Eight Capital is acting as agent for the offering. The Company intends to use the net proceeds of the offering to fund working capital and general corporate purposes.
Harvest Health & Recreation Inc (OTCMKTS:HRVSF) bills itself as Harvest Health & Recreation Inc. cultivates, manufactures, and retails cannabis in the United States. The company is headquartered in Vancouver, Canada.
Harvest Health & Recreation Inc. is one of the first consistently profitable, vertically integrated cannabis companies with one of the largest footprints in the U.S. Harvest’s complete vertical solution includes industry-leading cultivation, manufacturing, and retail facilities, construction, real estate, technology, operational, and brand building expertise — leveraging in-house legal, HR and marketing teams, along with proven experts in writing and winning state-based applications.
The company has more than 525 employees with proven experience, expertise and knowledge of in-house best practices that are drawn upon whenever Harvest enters new markets. Harvest’s executive team is comprised of leaders in finance, compliance, real estate and operations.
Since its founding in 2011, Harvest has grown its footprint every year, has been ranked as the third largest cultivator in the U.S. and currently owns licenses for more than 130 facilities across the U.S. Harvest shares timely updates and releases as part of its regular course of business with the media and the interested public.
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As noted above, HRVSF just announced that it has closed the first tranche of its previously announced brokered private placement of 7% unsecured convertible debentures of the Company, at a price of US$1,000 per Convertible Debenture for gross proceeds of US$100,000,000.
The stock has suffered a bit of late, with shares of HRVSF taking a hit in recent action, down about -5% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -17%. In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 21% above the average volume levels in play in this stock over the longer term.
“Our vision is to become the most valuable cannabis company in the world and this transaction will help fuel Harvest’s growth,” said Harvest CEO Steve White. “This is a particularly acquisitive time in the industry and access to significant capital with favorable terms is crucial to long-term success.”
At this time, carrying a capital value in the market of $2.19B, HRVSF has about $1.1M in cash currently on the books, which must be weighed relative to about $8.6M in total current liabilities. The company has pulled in about $11.6M in total trailing 12-month revenues. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $HRVSF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $HRVSF, either long or short, and we have not been compensated for this article.