Harvest Health Stock Slumps Despite Opening a New Store in California

Harvest Health stock

Harvest Health stock is taking a hit in early session on Monday despite Harvest Health and Recreation Inc (CSE:HARV) (OTCQX:HRVSF) announcing the opening of its Venice location in California.

One Step Ahead

Despite the talk of a slowdown in the cannabis industry over the past months, many of the companies in the sector are continuing to work on ways to expand their businesses and Harvest Health and Recreation is definitely among them. Harvest Health is one of the few cannabis companies in the United States that has a widespread presence in the country, and today, the company further expanded its presence.

In a new development, the company announced the establishment of Harvest of Venice. The store is located in Venice, California, and will help Harvest to consolidate its presence in the lucrative California cannabis market by bringing its premium quality products and definitive store experience.

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The Chief Executive Officer of Harvest Health and Recreation, Steve White, said of the development, “Venice is a community with a rich and vibrant cannabis history and we are excited to bring our store experience to consumers in the market, introducing them to our best-in-class products and knowledgeable staff.”

At the time of writing, Harvest Health stock is down 8.50% at $3.20.

The store is going to be open from 7 in the morning until 10 at night throughout the week, including weekends.

Harvest Health has made several strong moves over the past months, mostly to do with key acquisitions. One of the more important acquisitions was that of Verano Holdings for $850 million in an all-stock transaction.

While it is true that Harvest Health is currently not as big a retailer as many of its rivals, it should be noted that its expansion is helping it move in this direction. It has the highest number of licenses among multi-state operators, and at this point in time, it holds 135 retail licenses.

Additionally, the company has 210 licenses for growing and processing spread across 18 states in the United States. The only issue is that Harvest Health and Recreation has burned a lot of cash this year so far and it will perhaps have to dilute some Harvest Health stock in order to continue its expansion through California and beyond.

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Featured image: DepositPhotos © gustavofrazao