Pure Harvest Corporate Group Reports Third Quarter Results and Provides Corporate Update from CEO in Letter to Shareholders

Rhea-AI Summary

Pure Harvest Corporate Group (OTCQB: PHCG) released its third quarter results, reporting total sales revenue of $507,865, up from $318,690 year-over-year. The company surpassed $2 million in sales for 2021, with an adjusted EBITDA of $2,020,520. Significant growth is credited to the acquisition of SKM and the establishment of a retail facility in Colorado. However, plans for a $30 million investment from Kingpins International fell through, prompting potential legal actions. A new subsidiary, Phytocare, Inc., aims to distribute CBD products through healthcare networks, targeting 2.2 million patients.

Positive

• Total sales revenue increased to $507,865, up from $318,690 in Q3 2020.
• 2021 total sales have exceeded $2 million, indicating strong annual growth.
• Adjusted EBITDA reached $2,020,520 for the nine-month period ended September 30, 2021.
• The acquisition of SKM has contributed significantly to revenue growth, with SKM generating over $1,750,000 in revenue as of September 30, 2021.
• Phytocare, Inc. will distribute health products to a network of 2.2 million patients, expanding market access.

Negative

• The proposed $30 million investment from Kingpins International was not fulfilled, leading to potential legal action.
• -

GREENWOOD VILLAGE, CO, Nov. 16, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire – Pure Harvest Corporate Group, Inc. (OTCQB: PHCG), a vertically integrated consumer products holding company focused on cutting edge plant-based nutraceuticals, recreational cannabis, hemp-derived health and wellness products, and other emerging industries, is excited to issue an open letter to shareholders from its CEO, Matthew Gregarek.

Dear Fellow Shareholders,

As we approach year-end, I am writing to inform you of the exciting developments and opportunities we are pursuing at Pure Harvest. While we have faced headwinds in the past, I believe we are well-positioned to move forward and grow our businesses across the board and I feel the opportunities presented will help us deliver additional value for our shareholders.

Here is a brief recap of our third quarter results and significant developments.

Quarterly Financial Statements

On Monday, Pure Harvest filed its quarterly financial reports for the third quarter of 2021. The results are encouraging and show that we are still building on the foundation we put in place in 2020. Our total sales revenue for the quarter was $507,865 compared to $318,690 in the third quarter of 2020. At the end of Q3 2020, we had only recorded $323,731 in total revenue. In 2021, we have already exceeded $2,000,000 in sales and we are on course to record our best ever annual revenues. I am proud to report that Pure Harvest recorded an adjusted EBITDA of $2,020,520 for the nine month period ending September 30, 2021. 

Much of the growth in Pure Harvest’s revenue stems from the successful acquisition of SKM in 2020 and the construction of a strategically located retail facility in Dumont, CO. In 2019, the last full year of operations prior to the acquisition, SKM generated just over $1,000,000 in total revenues and in 2020, SKM recorded slightly more than $1,500,000 in revenues. I am excited to share that as of September 30, SKM has generated more than $1,750,000 in total revenues. Thanks to the hard work and diligence of our plant-touching operations team, SKM’s business in Dumont is growing rapidly. 

Kingpins International, Inc. 

In July of this year, we entered into a share purchase agreement with a group called Kingpins International, Inc., which would have profoundly changed Pure Harvest for the better. The agreed upon investment of $30,000,000 would have propelled Pure Harvest into the next stage and fueled rapid growth across our operations. Unfortunately, Kingpins failed to fulfill their obligations under the share purchase agreement and never funded the investment.  We are in discussions with the principals of Kingpins to negotiate a settlement to their breach, but we are also preparing to pursue legal action in the event no settlement can be reached. 

Phytocare, Inc.

In October 2021, we incorporated a new subsidiary to distribute our CBD and health and wellness products within the healthcare services industry. The new subsidiary, Phytocare, Inc., has acquired the rights to distribute our health and wellness products through a network of healthcare providers serving large corporate customers across the country. This agreement will place our products in the hands of doctors and patients as part of a preventative healthcare regimen that will be 100% subsidized by their employers. This network currently consists of 2.2 million patients, and growing, from a diverse range of employers including Fortune 50 companies, municipalities, unions, and Native American tribes. Once we have built out the program with this physician’s network, we plan to roll it out to traditional insurance carriers and expand the product line to cover additional health issues in order to reach more patients. 

We are extremely excited about this opportunity and believe that it will dramatically increase the acceptance of cannabinoids as medicine in the healthcare system. 

Hemp/CBD Consolidation

To support the roll out of Phytocare’s operations, we have consolidated all hemp and CBD product development and manufacturing under our wholly owned subsidiary, Test Kitchen, Inc. This centralization of hemp related operations will increase efficiency in our hemp division and allow for increased focus on product development for Phytocare. Under the management of Test Kitchen’s CEO, Amanda Bowman, we have grown product sales, streamlined packaging and fulfillment operations, and increased our investment in research and development to prepare to execute on the Phytocare opportunity. We are confident that when Phytocare is ready to launch its first product line in 2022, Test Kitchen will be well prepared to support its ongoing growth and development. 

SKM – Cannabis Operations

SKM is on track to have its best year to date in terms of revenues and overall profitability in 2021. In addition to recording the most retail revenues in its history, SKM is poised to exceed its annual wholesale sales record in Q4. The investments that we have made in SKM’s operations, including creating a new retail facility at a strategic location, are paying off and SKM is rapidly expanding its business operations in the Colorado cannabis industry. We will use everything we have learned in the last year of managing SKM’s operations to build the blueprint for further expansion of our cannabis operations, both in Colorado and across the country. 

As we continue to execute on our plans for the future, we are extremely grateful for the support we receive from our shareholders. We believe that we have placed Pure Harvest in a position to succeed in 2022 and we are excited to see our plans come to fruition.

Sincerely,
Matthew D. Gregarek
Chairman and CEO
Pure Harvest Corporate Group, Inc.

About Pure Harvest Corporate Group

Pure Harvest Corporate Group, Inc. (OTC: PHCG) is a vertically integrated holding company that manufactures, distributes, and sells a wide range of cannabis products including hemp/CBD and marijuana/THC consumer products. The Company's THC product line at its Dumont dispensary includes bulk flower, pre-rolls, and THC concentrates. The Company also sells THC distillate as an ingredient or raw material to other licensed marijuana infused products manufacturers within the State of Colorado along with wholesale THC concentrates such as wax and shatter. The Company's CBD product line includes tinctures, energy drink mixes and shots, lip balms, CBD topicals, and a variety of CBD chews for daytime and nighttime applications. Additionally, the Company markets and distributes a line of proprietary consumer products incorporating its patent-pending ingredient known as Cannabinoid Complex 612 to wholesale and retail customers.

Additionally, the Company may from time to time disclose public material events via its website at:

http://www.PureHarvestGroup.com Or its social media accounts at the following locations:

https://www.facebook.com/pureharvestgroup
https://www.linkedin.com/company/49645278/admin/

Forward-Looking Statements

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933, are subject to Rule 3b-6 under the Securities Exchange Act of 1934 and are subject to the safe harbors created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Future events and results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.

Media Inquiries:
Gretchen Gailey
Ggailey@panoptic-strategies.com
202.489.3821

Company Contact:
Pure Harvest Corporate Group, Inc.
Sherry Andersen, Corporate Communications
800.924.3716
www.pureharvestgroup.com

FAQ

What were Pure Harvest Corporate Group's Q3 2021 financial results?

Pure Harvest reported Q3 2021 sales revenue of $507,865, showing growth from $318,690 in Q3 2020.

How much total revenue has Pure Harvest generated in 2021?

Pure Harvest has already exceeded $2 million in sales for 2021, aiming for record annual revenue.

What is the status of the Kingpins International investment?

The $30 million investment from Kingpins International was not funded, and Pure Harvest may pursue legal action for breach.

What is Phytocare, Inc. and its significance?

Phytocare, Inc. is a new subsidiary focused on distributing CBD health products to a network of 2.2 million patients.

How has the acquisition of SKM impacted Pure Harvest's revenue?

The acquisition of SKM significantly boosted revenue, with SKM generating over $1,750,000 as of September 30, 2021.