Harvest One took in a record $4.1 million in revenue during the three months ending September 30. Revenue increased by 34% from the previous quarter.
MMJ holds 26% of Harvest One which is one of the largest investments within the MMJ cannabis and hemp portfolio.
Harvest One also reported improved adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $3.4 million, representing a 39% improvement over the previous quarter and a 15% improvement over the same period in 2018.
Enhanced strategic plan
In other news, Harvest One also released its enhanced strategic plan focusing on its core strengths of brand development and distribution, including the development and manufacturing of infused products for Cannabis 2.0, and strengthening its consumer packaged goods division.
The plan also incorporates immediate cost savings through reductions in workforce and operating overhead as Harvest One moves along the path to profitability.
Here are some highlights of the company’s enhanced strategic plan:
- The company is adapting its Lucky Lake facility to a state-of-the-art processing and manufacturing facility for value-added infused products, both for the company's existing brands and future expansion. The repurposing of the Lucky Lake facility will also result in significant cost savings that will improve cash flows in the near and long terms.
- Subsequent to the end of the 1Q, the company initiated a reduction in its workforce by about 20% across all its divisions including the elimination of a number of senior-level corporate positions. This reduction in headcount, along with other operating cost reduction initiatives, will result in cost savings of about 30% on an annualised basis.
- Harvest One is currently in discussions to divest its 50.1% interest in the Greenbelt Greenhouse facility and its outdoor growing site located in Lillooet, British Columbia. The sale of these non-core assets will provide cash proceeds to support the expansion of the company's core business lines and operational strengths.