HVT stock is up 4% today after Harvest One Cannabis (TSXV:HVT) (OTCQX:HRVOF) announced the receipt of a cultivation license for its Mission Road facility.
The Vancouver-based cannabis firm said that the new license had been awarded to its wholly-owned subsidiary United Greeneries Ltd, and will allow the company to begin cultivation at its Mission Road facility located in the town of Duncan on Vancouver Island. Once this facility reaches full functionality, it will triple Harvest One's production capacity at the Duncan site and should provide a boost to HVT stock, which has been on the slide throughout 2019.
"The issuing of this new license from Health Canada represents another key accomplishment for Harvest One as we continue to execute on our projects and plans to be a leading producer of premium indoor-grown cannabis [...] under the watchful eye of our first in class cultivation team, we continue to produce top tier cannabis for our discerning consumers," said Grant Froese, Chief Executive Officer of Harvest One. HVT shares are currently valued at $0.40, having lost over 60% from a March peak of $1.09.
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Despite the sliding share price, Harvest One Cannabis has been a strong performer in 2019. Back in February, the company reported a 123% revenue increase in its Q2 earnings call, as well as entering into agreements with Canadian extraction company Valens GroWorks (TSXV:VGW) (OTCQX:VGWCF) and retailer Shoppers Drug Mart. The Shoppers deal is not the first such retail deal that Harvest One has inked after its Dream Water subsidiary signed supply deals with Walmart (NYSE:WMT) and Kroger (NYSE:KR). This expanded retail presence could be a significant boost for HVT stock once its Duncan site reaches full capacity.
HVT stock could also be a major beneficiary of the rapidly expanding European CBD market following the company's launch of its Satipharm CBD oil range, which is available online to European customers and in 1,800 stores across Ireland and the UK. The European CBD market is one of the fastest-growing cannabis sectors in the world, with a projected worth of $1.7 billion USD by 2023 according to Brightfield Group.
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