The stock of U.S. cannabis seller Harvest Health & Recreation was up 5% on Tuesday, after the company reported strong growth and discussed its high hopes for the future. In early afternoon trading on the U.S. OTC Market, the stock (ticker: HRVSF.OTC) was at $10.05. Harvest shares also trade on the Canadian Securities Exchange. The stock is up more than 90% this year.
“This industry is at a unique inflection point,” Chief Executive Steve White said in a conference call. “We’re still early in the game.”
The Phoenix, AZ-based company had $47 million in sales for 2018, and a loss of $67 million. Sales for the quarter that ended in December were $17 million, up more than 50% from the previous quarter.
Most of Harvest’s 2018 loss resulted from noncash charges related to the way it went public—by merging into a Canadian public company, because pot’s illegality under U.S. federal law keeps big exchanges such as the NYSE and the Nasdaq from listing Harvest and other U.S. cannabis companies. Adjusting for noncash charges, stock compensation, and one-time transaction charges, Harvest said that its 2018 cash flow was $10 million. “We’re proud of our track record as a consistently profitable company,” White said.