The future is bright for Harvest One Cannabis Inc (OTCMKTS:HRVOF). Those are the sentiments shared by the company’s top hierarchy after delivering a 900% increase in revenues in the recent quarter. The company has also touted a balance sheet with $48 million which the management remains confident is sufficient to support expansion plans.
Harvest One Cannabis Price Analysis
It does not come as a surprise that the stock has started bottoming out after shedding more than 80% in market value over the past year. Renewed investor interest in the stock stems on the company underlining its growth metrics.For starters, Harvest One Cannabis has signed a number of supply agreements in four separate provinces, which open the door for it to strengthen its revenue streams. The company is currently ranked as one of the top brands for cannabis sales in British Columbia and Ontario.Investors have since reacted to the developments and pushed the stock up the charts. The stock is already up by more than 60% for the year, in response to the solid fundamentals. The stock is currently trading in a steep uptrend having breached a critical resistance level at the $0.49 mark. HRVO Daily ChartGiven the strength of the upward momentum, the stock looks set to make a run for the $0.60 mark, the next substantial resistance level. On the downside, the stock faces immediate support at the $0.45 level below which it remains vulnerable to further drops.
About Harvest One Cannabis
Harvest One Cannabis specializes in the development and distribution of cannabis-infused wellness products. The company cultivates and distributes cannabis products to both recreational and medical markets, in addition to cannabis-based food supplement products in Europe.[embed]https://www.youtube.com/watch?v=eikfArKjQ50[/embed]
Revenue Growth
A recent spike in share activity comes on Harvest One Cannabis reporting impressive numbers in its recent quarter. A 900% increase in revenues that came in at $1.7 million is a development that has continued to excite the markets.A balance sheet with $48 million should help the support the company’s plans to accelerate revenue growth in 2019. The company has already confirmed plans to carry out acquisitions and pursue joint ventures as a way of stimulating growth. Late last year, the company invested in Burb Cannabis Corp as it continued to expand its footprint in the multi-billion industry.Burb Cannabis investment marked the first phase of the company’s retail strategy that seeks to strengthen revenue avenues.
"Harvest One is committed to providing consumers with high-quality, end-to-end cannabis solutions and investing in Burb helps us achieve this goal. The investment in Burb also allows Harvest One to play a pro-active role in educating consumers about recreational cannabis and shape the future of cannabis retail in Canada,” said Grant Froese, CEO of Harvest One.
Expansion Drive
Harvest One Cannabis has also secured cannabis supply agreements in key markets of British Columbia, Ontario, and Manitoba. The agreements pave the way for the company to strengthen its revenue streams in response to the legalization of recreational use.While cannabis cultivation remains a pivotal part of the Harvest 1 strategy, the company also intends to focus on creating value-added derivative products. Some of the products the company is working on to strengthen its product pipeline include oils, vapes pens as well as creams and beverage infused with cannabis.In addition to developing a global house of brands, Harvest One Cannabis has also made it clear, its intention to be cash flow neutral in 2019. The company is still eyeing a number of investments that will eat into its balance sheet, in pursuit of market share in the burgeoning sector. However, revenue growth should help offset some of the expenditures on the investment front.Harvest One Cannabis has also commenced construction of its 60,000 square foot Lucky Lake facility. The facility is slated for completion in the second quarter of 2018 and should strengthen the company’s cannabis production capacity by between 8,000 and 12,000 Kgs
What Next For Harvest One Cannabis
Harvest One Cannabis has every reason to succeed in 2019 having started the year on a roll. The company is in a phase of robust revenue growth, which affirms its long-term growth prospects.In addition, the company has made a string of investments in both supply agreements as well as product line as it continues to strengthen its prospects in the multi-billion industry. A recent spike in share price should continue to gain momentum on investors taking note of Harvest One Cannabis growth potential.We will be updating our subscribers as soon as we know more. For the latest updates on HRVOF, sign up below!Disclosure: We have no position in HRVOF and have not been compensated for this article.
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