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Third quarter revenue was $61.6 million , up 86% from the third quarter 2019 and 11% sequentially

Third quarter adjusted EBITDA was $10.5 million , compared to $4.1 million in the second quarter of 2020

<p> – <i> 2020 revenue target increased to greater than <span> $225 million </span> , up from <span> $215 </span> -220 million </i> </p>
<p> <span> PHOENIX </span> , <span> Nov. 10, 2020 </span> /PRNewswire/ — <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=4223743643&amp;u=http%3A%2F%2Fwww.harvesthoc.com%2F&amp;a=Harvest%C2%A0Health%C2%A0%26%C2%A0Recreation%C2%A0Inc.” rel=”nofollow noopener noreferrer” target=”_blank”> Harvest Health &amp; Recreation Inc. </a> (“Harvest” or the “Company”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today reported its financial and operating results for the third quarter 2020. All financial information is provided in U.S. dollars unless otherwise indicated. </p>
<p> <b> Third Quarter 2020 Financial Results </b> </p>
<ul type=”disc”><li> Total revenue in the third quarter was <span> $61.6 million </span> , an increase of 86% from <span> $33.2 million </span> in the third quarter of 2019, and up 11% compared to <span> $55.7 million </span> in the second quarter of 2020. </li>
<li> Gross profit excluding biological adjustments in the third quarter was <span> $28.7 million </span> , compared to <span> $11.6 million </span> in the third quarter of 2019, and <span> $23.4 million </span> in the second quarter of 2020. </li>
<li> Gross profit margin excluding biological adjustments in the third quarter was 46.6%, compared to 35.0% in the third quarter of 2019, and 42.1% in the second quarter of 2020. </li>
<li> Net loss was <span> $2.1 million </span> for the third quarter, compared to a net loss of <span> $39.1 million </span> in the third quarter of 2019 and <span> $18.3 million </span> for the second quarter 2020. </li>
<li> Adjusted EBITDA excluding biological adjustments in the third quarter was <span> $10.5 million </span> , compared to <span> ($10.9) million </span> in the third quarter of 2019 and <span> $4.1 million </span> in the second quarter of 2020. </li>
</ul><p> <i> Please see the supplemental information regarding unaudited results and Non-IFRS Financial Measures at the end of this press release. </i> </p>
<p> <b> Third Quarter 2020 Business Highlights </b> </p>
<ul type=”disc”><li> During the third quarter of 2020, Harvest opened one new dispensary in <span> Phoenix, Arizona </span> and one new dispensary in <span> Cranberry Township, Pennsylvania </span> . </li>
<li> As of <span> September 30, 2020 </span> , Harvest owned, operated, or managed 37 retail locations in seven states, including 15 open dispensaries in <span> Arizona </span> . Harvest owned and operated dispensaries exclude retail locations serviced through Interurban. </li>
</ul><p> <b> Subsequent Events </b> </p>
<ul type=”disc”><li> Subsequent to <span> September 30, 2020 </span> , Harvest opened two retail locations in <span> Camp Hill </span> and <span> King of Prussia, Pennsylvania </span> . </li>
<li> On <span> October 2, 2020 </span> , Harvest terminated the agreement to sell two <span> California </span> retail assets to Hightimes Holdings for <span> $6 million </span> in preferred stock. </li>
<li> On <span> October 28, 2020 </span> , Harvest completed a bought deal financing raising gross proceeds of approximately <span> $32.4 million </span> including the overallotment option. Units sold in the offering were priced at Cd$2.26 per unit and included one subordinate voting share and one-half warrant. Each warrant has an exercise price of Cd$3.05 and duration of 30 months. </li>
<li> On <span> October 30, 2020 </span> , Harvest completed the purchase and license transfer of THChocolate, LLC, including cannabis manufacturing licenses in <span> Colorado </span> . The consideration paid was immaterial. </li>
<li> On <span> November 2, 2020 </span> , Harvest announced a settlement agreement with Devine Holdings. Under the terms of the agreement, Harvest will acquire three vertical medical cannabis licenses in <span> Arizona </span> exchange for the repayment by Devine Holdings of an outstanding <span> $10.45 million </span> receivable owed to Harvest concurrently with the license acquisition. </li>
<li> On <span> November 3, 2020 </span> , <span> Arizona </span> voters approved Prop 207, a ballot initiative to allow recreational cannabis consumption in <span> Arizona </span> . </li>
</ul><p> <b> Outlook <br/></b> Harvest is increasing its full year 2020 revenue target to greater than <span> $225 million </span> , up from the prior target of <span> $215 </span> -220 million. We remain focused on improving the profitability of our business and we expect our gross margins will continue to trend upwards overall, with some quarterly fluctuations due to mix and market changes. This forecast assumes no meaningful impacts or disruptions to our operations as a result of the COVID-19 pandemic. </p>
<p> <b> Management Commentary <br/></b> “Our third quarter results demonstrate further progress toward our primary goal of returning to profitability through revenue growth, cost controls, and investments in our core markets of <span> Arizona </span> , <span> Florida </span> , <span> Maryland </span> , and <span> Pennsylvania </span> ” said Chief Executive Officer <span> Steve White </span> . “We are focused on preparing for recreational cannabis in <span> Arizona </span> in 2021 and continuing to build on this positive momentum as we execute on our plan.” </p>
<p> <b> Conference Call &amp; Webcast <br/></b> Harvest Health and Recreation Inc. will host a conference call and audio webcast with Chief Executive Officer <span> Steve White </span> and Chief Financial Officer <span> Deborah Keeley </span> , <span> Tuesday November 10, 2020 </span> at <span> 5:00 PM Eastern Time </span> . </p>
<p> <b> Registration for this event is required. </b> Please use this link to register: <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=113864361&amp;u=http%3A%2F%2Fwww.directeventreg.com%2Fregistration%2Fevent%2F3878799&amp;a=http%3A%2F%2Fwww.directeventreg.com%2Fregistration%2Fevent%2F3878799″ rel=”nofollow noopener noreferrer” target=”_blank”> http://www.directeventreg.com/registration/event/3878799 </a> </p>
<p> Following registration, an email confirmation will be sent including dial in details and unique conference call codes. Registration will remain open during the call however we recommend advance registration to access the event. </p>
<p> Third quarter results will be available at: <br/><a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=4064757379&amp;u=https%3A%2F%2Finvestor.harvesthoc.com%2Ffinancials%2Fdefault.aspx&amp;a=https%3A%2F%2Finvestor.harvesthoc.com%2Ffinancials%2Fdefault.aspx” rel=”nofollow noopener noreferrer” target=”_blank”> https://investor.harvesthoc.com/financials/default.aspx </a> </p>
<p> The live conference call webcast and replay will be available at: <br/><a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=4064757379&amp;u=https%3A%2F%2Finvestor.harvesthoc.com%2Ffinancials%2Fdefault.aspx&amp;a=https%3A%2F%2Finvestor.harvesthoc.com%2Ffinancials%2Fdefault.aspx” rel=”nofollow noopener noreferrer” target=”_blank”> https://investor.harvesthoc.com/financials/default.aspx </a> </p>
<div>
<div>
<table border=”0″ cellpadding=”0″ cellspacing=”0″ id=”convertedTableb067″><tbody><tr><td colspan=”10″ nowrap=””>
<p> <span> <b> HARVEST HEALTH &amp; RECREATION INC. </b> <br/><b> Interim Unaudited Condensed Consolidated Statements of Financial Position </b> <br/><b> September 30, 2020 and December 31, 2019 </b> <br/><b> ( <i> Amounts expressed in thousands of United States dollars) </i> </b> <b> <i> </i> </b> </span> </p>
</td>
</tr><tr><td colspan=”10″> </td>
</tr><tr><td colspan=”10″ nowrap=””> </td>
</tr><tr><td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> September 30, </b> </span> </p>
<p> <span> <b> 2020 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> December 31, </b> </span> </p>
<p> <span> <b> 2019 </b> </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> ASSETS </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Current assets: </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Cash and cash equivalents </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 62,756 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 22,685 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Restricted cash </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,000 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,000 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Accounts receivable, net </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 17,385 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 12,147 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Notes receivable, current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 47,705 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 51,349 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Biological assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 26,359 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,057 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Inventory, net </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 41,173 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 28,774 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other current assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 5,445 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 4,788 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Total current assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 208,823 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 135,800 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Notes receivable, net of current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,444 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 34,430 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Property, plant and equipment, net </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 158,838 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 149,867 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Right-of-use asset, net </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 67,083 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 56,955 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Intangibles assets, net </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 263,923 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 159,209 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Corporate investments </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 19,091 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Acquisition deposits </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 528 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 3,645 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Goodwill </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 115,671 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 84,596 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Assets held for sale </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 5,948 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 2,444 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 20,654 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,618 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> TOTAL ASSETS </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 862,003 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 635,564 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> LIABILITIES AND STOCKHOLDERS’ EQUITY </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> LIABILITIES </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Current liabilities: </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Accounts payable </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 6,150 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 6,969 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other current liabilities </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 29,037 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 21,944 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Contingent consideration, current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 12,446 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 13,764 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Income tax payable </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,104 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 5,310 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Lease liability, current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,289 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 2,885 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Notes payable, current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 32,711 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 8,395 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Total current liabilities </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 96,737 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 59,267 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Notes payable, net of current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 260,997 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 202,619 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Lease liability, net of current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 61,862 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 54,621 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Deferred tax liability </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 56,987 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 28,587 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Contingent consideration, net of current portion </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,108 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 16,249 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other long-term liabilities </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 208 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 179 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> TOTAL LIABILITIES </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 477,899 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 361,522 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> STOCKHOLDERS’ EQUITY </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Capital stock </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 652,713 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 505,709 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Accumulated deficit </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (275,764) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (235,348) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Stockholders’ equity attributed to Harvest Health &amp; Recreation Inc. </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 376,949 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 270,361 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Non-controlling interest </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 7,155 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 3,681 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> TOTAL STOCKHOLDERS’ EQUITY </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 384,104 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 274,042 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 862,003 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 635,564 </span> </p>
</td>
<td nowrap=””> </td>
</tr></tbody></table></div></div>
<div>
<div>
<table border=”0″ cellpadding=”0″ cellspacing=”0″ id=”convertedTable28ec”><tbody><tr><td colspan=”18″>
<p> <span> <b> HARVEST HEALTH &amp; RECREATION INC. </b> </span> </p>
</td>
</tr><tr><td colspan=”18″ nowrap=””>
<p> <span> <b> Interim Unaudited Condensed Consolidated Statements </b> <b> of Operations </b> <br/><b> Three and Six Months Ended September 30, 2020 and 2019 </b> <br/><b> ( <i> Amounts expressed in thousands of United States dollars, except share or per share data </i> ) </b> </span> </p>
</td>
</tr><tr><td colspan=”18″> </td>
</tr><tr><td colspan=”18″ nowrap=””> </td>
</tr><tr><td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”6″ nowrap=””>
<p> <span> <b> For the three months ended <br/> September 30, </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”6″ nowrap=””>
<p> <span> <b> For the nine months ended <br/> September 30, </b> </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2020 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2019 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2020 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2019 </b> </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Revenue, net of discounts </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 61,643 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 33,151 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 161,547 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 78,987 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Cost of goods sold </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (32,934) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (21,532) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (91,266) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (52,782) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Gross profit before biological asset adjustments </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 28,709 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 11,619 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 70,281 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 26,205 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Realized fair value amounts included in <br/> inventory sold </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (24,769) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (17,644) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (53,996) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (31,119) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Unrealized fair value gain on growth of <br/> biological assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 34,385 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 17,901 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 74,258 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 36,748 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Gross profit </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 38,325 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 11,876 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 90,543 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 31,834 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Expenses </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> General and administrative </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 20,736 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 30,998 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 65,871 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 71,148 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Sales and marketing </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 834 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 2,895 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 3,355 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 6,537 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Share-based compensation </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,268 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 7,718 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 18,348 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 19,115 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Depreciation and amortization </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 3,551 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 4,491 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 10,529 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 7,584 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Total expenses </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 26,389 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 46,102 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 98,103 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 104,384 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Operating income (loss) </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 11,936 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (34,226) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (7,560) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (72,550) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Other (expense) income </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Gain (loss) on sale of assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (140) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 116 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 760 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 206 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other (expense) income </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (32) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (629) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 10,223 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (878) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Foreign currency gain (loss) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 26 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 277) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (82) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (501) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Interest expense </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (13,224) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (5,512) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (32,574) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (8,726) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Contract asset impairment </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (2,420) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Loss before taxes and non-controlling <br/> interest </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (1,434) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (39,974) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (31,653) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (82,449) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Income taxes </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (206) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 464) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (5,132) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (3,571) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Loss from continuing operations before non- <br/> controlling interest </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (1,640) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (39,510) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (36,785) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (86,020) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Net loss from discontinued operations, net of <br/> tax </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (131) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (1,420) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Net loss before non-controlling interest </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (1,771) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (39,510) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (38,205) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (86,020) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Loss (gain) attributed to non-controlling <br/> interest </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (370) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 415 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (2,211) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,383 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Net loss attributed to Harvest Health &amp; <br/> Recreation Inc. </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (2,141) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (39,095) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (40,416) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (84,637) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Loss per share – basic and diluted </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.01) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.09) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.12) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.30) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Attributable to Harvest Health and <br/> Recreation Inc. Stockholders </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.00) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.09) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.11) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.30) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Attributable to discontinued operations, net <br/> of tax </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Attributable to non-controlling interest </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.00) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 0.00 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (0.01) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 0.00 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> <b> Weighted-average shares outstanding – basic <br/> and diluted </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 367,340,268 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 288,137,942 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 345,366,810 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 285,839,909 </span> </p>
</td>
<td nowrap=””> </td>
</tr></tbody></table></div></div>
<p> <b> Non-IFRS Financial and Performance Measures </b> </p>
<p> <i> The Company provides additional financial metrics that are not prepared in accordance with IFRS. Management uses non-IFRS financial measures, in addition to IFRS financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate the Company’s financial performance. This non-IFRS financial measure is Adjusted EBITDA. </i> </p>
<p> <i> Management believes that these non-IFRS financial measures reflect the Company’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparing financial results across accounting periods and to those of peer companies. Management also believes that these non-IFRS financial measures enable investors to evaluate the Company’s operating results and future prospects in the same manner as management. These non-IFRS financial measures may also exclude expenses and gains that may be unusual in nature, infrequent or not reflective of the Company’s ongoing operating results. </i> </p>
<p> <i> As there are no standardized methods of calculating these non-IFRS measures, the Company’s methods may differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similarly titled measures used by others. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. </i> </p>
<p> <b> Reconciliations of Non-IFRS Financial and Performance Measures </b> </p>
<p> The table below reconciles Net Loss to Adjusted EBITDA for the periods indicated. </p>
<div>
<div>
<table border=”0″ cellpadding=”0″ cellspacing=”0″><tbody><tr><td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”6″ nowrap=””>
<p> <span> <b> Three months ended <br/> September 30, </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”6″ nowrap=””>
<p> <span> <b> Nine months ended <br/> September 30, </b> </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2020 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2019 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2020 </b> </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td colspan=”2″ nowrap=””>
<p> <span> <b> 2019 </b> </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Net loss (IFRS) before non-controlling interest </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (1,771) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (39,510) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (38,205) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (86,020) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Add (deduct) impact of: </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Net interest and other financing costs <sup> (1) </sup></span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 13,167 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 5,512 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 32,904 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 9,248 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Income tax </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 206 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (464) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 5,132 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 3,571 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Amortization and depreciation <sup> (2) </sup></span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 4,250 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 4,894 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 13,089 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 9,099 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> (Gain) loss on assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 140 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (116) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (760) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (206) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other (expense) income </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 32 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 629 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (10,223) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 878 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Foreign currency (gain) loss </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (26) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (277) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 82 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 501 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Share-based compensation expense </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,268 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 7,718 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 18,348 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 19,115 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Contract asset impairment </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 2,420 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Discontinued operations, net of tax </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 131 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,420 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> — </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Realized fair value amounts included in inventory sold </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 24,769 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 17,644 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 53,996 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 31,119 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Unrealized fair value gain on growth of biological <br/> assets </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (34,385) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (17,901) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (74,258) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> (36,748) </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Other expansion expenses (pre-open) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 2,429 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 4,616 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 5,356 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 7,111 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Transaction &amp; other special charges </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 291 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 6,346 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 1,693 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> 14,304 </span> </p>
</td>
<td nowrap=””> </td>
</tr><tr><td nowrap=””>
<p> <span> Adjusted EBITDA (non-IFRS) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 10,501 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (10,909) </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> 10,994 </span> </p>
</td>
<td nowrap=””> </td>
<td nowrap=””> </td>
<td nowrap=””>
<p> <span> $ </span> </p>
</td>
<td nowrap=””>
<p> <span> (28,028) </span> </p>
</td>
<td nowrap=””> </td>
</tr></tbody></table></div></div>
<p></p>
<div>
<div>
<table border=”0″ cellpadding=”0″ cellspacing=”0″><tbody><tr><td>
<p> <span> (1) Includes $(57), $330, $— and $520  of interest reported in cost of sales. </span> </p>
</td>
</tr><tr><td>
<p> <span> (2) Includes $698, $2,560, $403 and $1,515 of depreciation reported in cost of sales. </span> </p>
</td>
</tr></tbody></table></div></div>
<p> <b> <i> About Harvest Health &amp; Recreation Inc. </i> </b> </p>
<p> <i> Headquartered in Tempe, <span> Arizona </span> , Harvest Health &amp; Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: </i> <i> <u> <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=415421512&amp;u=https%3A%2F%2Fharvesthoc.com%2F&amp;a=https%3A%2F%2Fharvesthoc.com” rel=”nofollow noopener noreferrer” target=”_blank”> https://harvesthoc.com </a> </u> </i> <i> </i> </p>
<p> <b> Facebook: </b> <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=3224975649&amp;u=https%3A%2F%2Fwww.facebook.com%2FHarvestHOC&amp;a=%40HarvestHOC” rel=”nofollow noopener noreferrer” target=”_blank”> @HarvestHOC </a> <br/><b> Instagram: </b> <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=351510464&amp;u=https%3A%2F%2Fwww.instagram.com%2Fharvesthoc%2F&amp;a=%40HarvestHOC” rel=”nofollow noopener noreferrer” target=”_blank”> @HarvestHOC </a> <br/><b> Twitter: </b> <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=381878979&amp;u=https%3A%2F%2Ftwitter.com%2Fharvesthoc&amp;a=%40HarvestHOC” rel=”nofollow noopener noreferrer” target=”_blank”> @HarvestHOC </a> </p>
<p> <b> Forward-looking Statements </b> </p>
<p> <i> This press release includes information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events, referred to herein and which constitute “forward-looking statements” or “forward-looking information” within the meaning of Canadian and U.S. securities laws. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate” or, in each case, their negative and words of similar meaning are intended to identify forward-looking statements. By their nature, forward-looking statements involve a number of known and unknown risks, uncertainties and assumptions concerning, among other things, the effects of the weather, natural disasters, and health pandemics, including the novel coronavirus (COVID-19), on customer demand, the Company’s supply chain as well as its consolidated results of operation, financial position and cash flows, the ability of Harvest to develop Harvest’s brand and meet its growth objectives, the ability of Harvest to complete planned acquisitions that are accretive to its revenue, the ability of Harvest to obtain and/or maintain licenses to operate in the jurisdictions in which it operates or in which it expects or plans to operate; changes in general economic, business and political conditions, including changes in the financial markets; and in particular the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties or assets necessary to execute on the Company’s business plans; and increasing costs of compliance with extensive government regulation. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Although the Company has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this press release is based on the Company’s current estimates, expectations and projections, which the Company believes are reasonable as of the current date. The Company can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking statements, which are based on the information available as of the date of this press release. Forward-looking statements contained in this press release are made of the date of this press release and, except as required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements contained in this press release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In this regard, certain financial information contained herein has been extracted from, or based upon, information available in the public domain and/or provided by the Company. In particular historical results should not be taken as a representation that such trends will be replicated in the future. No statement in this press release is intended to be a profit forecast. While the information contained herein is believed to be accurate, the Company, its affiliates, and their respective stockholders, members, partners, directors, managers, officers, employees, agents, advisors, and other representatives each expressly disclaims any and all liability for representations, expressed or implied, contained in or omitted from this press release or any other written or oral communications transmitted to any interested party in the course of its evaluation of the Company. Nothing contained herein is or shall be relied upon as a promise or representation by the Company or their affiliates or any of their respective stockholders, members, partners, directors, managers, officers, employees, agents, advisors, or other representatives as to the past or future performance of the Company. Only those particular representations and warranties made by the Company in a written definitive agreement, when and if one is executed, and subject to such limitations and restrictions as may be specified in such agreement, shall have any legal effect. </i> </p>
<p> <i> To the extent any forward-looking information in this press release constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading “Forward-Looking Information.” Please also see risks highlighted under the heading “Risk Factors” in our Canadian filings, and under the heading “Item 1A. Risk Factors” in our recent Form 10 filing with the U.S Securities and Exchange Commission, as well as our subsequent filings in <span> the United States </span> and <span> Canada </span> . Harvest’s actual financial position and results of operations may differ materially from management’s current expectations and, as a result, Harvest’s revenue and expenses may differ materially from the revenue and expenses profiles provided in this press release. Such information is presented for illustrative purposes only and may not be an indication of Harvest’s actual financial position or results of operations. </i> </p>
<p> <b> Additional Information </b> </p>
<p> <i> The financial information reported in this news release is based on unaudited management prepared financial statements for the quarter ended <span> September 30, 2020 </span> . Accordingly, such financial information may be subject to change. Financial statements for the period will be released and filed under the Company’s profiles on SEDAR at <a href=”https://c212.net/c/link/?t=0&amp;l=en&amp;o=2977389-1&amp;h=1619851661&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.SEDAR.com” rel=”nofollow noopener noreferrer” target=”_blank”> www.SEDAR.com </a> by <span> November 29, 2020 </span> . All financial information contained in this news release is qualified in its entirety with reference to such unaudited financial statements. While Harvest does not expect there to be any material changes, to the extent that the financial information contained in this news release is inconsistent with the information contained in the unaudited financial statements, the financial information contained in this news release shall be deemed to be modified or superseded by Harvest’s unaudited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. </i> </p>
<p id=”PURL”> <img alt=”Cision” class=”lazy” data-src=”https://c212.net/c/img/favicon.png?sn=LA87199&amp;sd=2020-11-10″ data-srcset=”” height=”12″ data-src=”https://c212.net/c/img/favicon.png?sn=LA87199&amp;sd=2020-11-10″ data-srcset=”” title=”Cision” width=”12″/> View original content: <a href=”http://www.prnewswire.com/news-releases/harvest-health–recreation-inc-reports-third-quarter-2020-financial-results-301170240.html” id=”PRNURL” rel=”nofollow noopener noreferrer” target=”_blank”> http://www.prnewswire.com/news-releases/harvest-health–recreation-inc-reports-third-quarter-2020-financial-results-301170240.html </a> </p>
<p> SOURCE Harvest Health &amp; Recreation Inc. </p>
</div>
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