Recent action in shares of Harvest Health & Recreation Inc (OTCMKTS:HRVSF) continues to portray a picture of relative weakness with growing potential. We took a bearish stance on the stock some time ago but have been hunting for a point to get excited again. The stock’s action so far this week is interesting from that perspective, with shares rebounding off a gap-down open to affirm support in the $5/share zone.
Helping to flesh out that narrative, the company just announced the acquisition of Phoenix operator Urban Greenhouse. According to the release, “The agreement advances the company’s expansion and market penetration efforts across Arizona, adding operations of the Urban Greenhouse medical cannabis dispensary and cultivation facility. The dispensary will be transitioned to operate under Harvest’s House of Cannabis stores, known for quality-driven retail experiences with a focus on bettering the community.”
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 the acquisition of Phoenix operator Urban Greenhouse.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -18%. What’s more, the listing has registered increased average transaction volume recently, with the past month seeing 11% above the average volume levels in play in this stock over the longer term.
“As we grow to be the most valuable cannabis company, it is imperative that we continue efforts in key cannabis markets including our home state of Arizona to bring the community greater economic development and provide consumers easier access to high-quality retail experiences and products. We have a deep appreciation for our home market and are dedicated to driving new job opportunities, future store developments and consumer education programs for local communities,” said Harvest Executive Chairman Jason Vedadi.
“Urban Greenhouse has done an exceptional job of becoming a household name in Phoenix and with its excellent real estate position and community reputation, we believe Harvest’s expert operational team will only accelerate the growth for the already successful dispensary.”
Currently trading at a market capitalization of $518M, 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 as 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.