OVERVIEW OF THE COMPANY Harvest is one of the largest multi-state vertically integrated operators in the cannabis industry in the United States. Founded in Arizona and receiving its first license there in 2012, Harvest has one of the largest market shares in the state, one of the largest medical cannabis market in the country and one of the oldest regulated cannabis markets in the world.
Building on its success in Arizona, Harvest has consistently grown its revenues and industry footprint every year since its founding, currently operates in six states, and is actively exploring expansion into additional states, with planned expansion into at least one more by 2020. Since 2013, Harvest has won a variety of operating awards, including seven Best Dispensary awards issued by four independent organizations, four Best Medical Cannabis Strain awards, and one Best Medical Cannabis Product award.
The Harvest team brings broad operational expertise in real estate, legislation, permitting, zoning and retail sales. The Company has been extremely successful in winning licensure in non-competitive and competitive application processes throughout the country, winning many licenses across the states in which it operates or is expanding. Harvest’s ability to navigate complex regulatory pathways that are different in each state, as well as extensive research into each market it enters, are key tenets to its success. Harvest is a vertically integrated cannabis company that operates from “seed to sale.”
Harvest currently holds licenses, has operations, or has licensing relationships in Arizona, Arkansas, California, Colorado, Florida, Maryland, Massachusetts, Michigan, Nevada, North Dakota, Pennsylvania and Utah with pending applications in, and is exploring expansion into additional states.
In addition, Harvest owns CO2 extraction, distillation, purification and manufacturing technology used to produce a line of therapeutic cannabis topicals, vapes and gems, featuring cannabinoids and a hemp-derived product line sold in Colorado with plans for nationwide distribution.
The Company operates in one segment, the processing and sale of cannabis, with three main business areas contributing to that segment:
• Cultivation – Harvest grows cannabis in outdoor, indoor and greenhouse facilities. Its expertise in growing enables the Company to produce award-winning and proprietary strains in a highly cost-effective manner. The Company sells its products in Harvest dispensaries and also to third parties.
• Processing – Harvest converts cannabis biomass into formulated oil using a variety of extraction techniques. The Company uses some of this oil to produce consumer products such as vaporizer cartridges and edibles, and it sells the remaining oil to third parties.
• Retail dispensaries – Harvest operates award-winning retail dispensaries that sell proprietary and third-party cannabis products to patients and customers
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 and now has more than 60 licenses in 12 states, with planned expansion into additional states by 2020. Investor Note: In addition to the 67,580,634 Subordinate Voting Shares that are listed and trading, there are 216,773,000 shares reserved for issuance pursuant to the conversion rights attached to the Super Voting Shares and Multiple Voting Shares that are issued and outstanding but not listed. The total number of issued shares, assuming all are converted into the listed class, would be 284,353,634.