Pure Harvest Group Provides Corporate and Operational Update
GREENWOOD VILLAGE, CO, November 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 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.
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.
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.
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 including 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:
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.
Pure Harvest Corporate Group, Inc.
Sherry Andersen, Corporate Communications