Categories
Marijuana

Harvest Health & Recreation Inc. (OTCMKTS:HRVSF) To Sell Some Of Its California Dispensaries to Hightimes Holding Corp

Harvest Health & Recreation Inc. (OTCMKTS:HRVSF) has announced that it is planning to divest some of its Californian retail assets to Hightimes Holding Corp. the companies entered a definitive agreement for Hightimes Holding to acquire 13 operational and planned Harvest dispensaries in California.

Divesting of assets part of Harvest Health’s restructuring

The stock-based deal once complete will see Harvest and Its associates sell various assets and equity for a total consideration of around $5 million which will be in cash plus a one-year promissory note of $7,5 million with an interest of 10% as well as $67.5 million in High Times’ Preferred Series A stock. Harvest is planning to retain some of its retail dispensaries as well as licenses for planned retail outlets in the state after finalizing the transaction.

The CEO of Harvest Health Steve White indicated the divestment of its assets in California will allow the company to focus on enhancing its operations as well as the expansion of assets in its main markets such as Pennsylvania, Maryland, Arizona, and Florida. White indicated that going forward, the company will continue re-evaluating the strategic value of its assets as well as reorganizing operations in the path towards profitability.

Deal to give Hightimes access to the retail cannabis market

On the other hand, this will be an opportunity for Hightimes Holdings to venture into the retail market and help the company in becoming among the biggest cannabis brands in the state of California. The company will revamp the current design as well as rebrand the dispensaries to fit its aesthetic experience with branding using the popular High Times logo.

Adam Levin, the executive Chairman of Hightimes Holding, indicated that the company has been supporting Harvest Health as well as other marijuana retail pioneers in the push for the change in legislation, political stigma, and insurmountable licensing charges. He added that they are looking forward to ushering in a new generation cannabis business in California.

The deal will be finalized by June 30, 2020, subject to regulatory approval and other closing conditions.

Categories
Marijuana

Harvest Health & Recreation Inc (OTCMKTS:HRVSF) Issues A Corporate Update: Signs An Accord To Acquire Interurban Capital Group, Inc For $85.8 Million

Harvest Health & Recreation Inc (OTCMKTS:HRVSF) has signed a definitive merger accord to takeover Interurban Capital Group, Inc for $85.8 million. The company will issue 309,452 multiple voting shares and assumes a debt of $19.1 million, which will be converted into 205,594 multiple voting shares. The assets of Interurban Capital comprise indirect and direct licenses. Interurban Capital holds rights to takeover entities together with licenses in Washington, Iowa, and California.

Greater financial flexibility

Steve White, CEO of Harvest Health said the company is pleased to welcome Heart dispensaries into its family. Following the merger with Interurban Capital, Harvest Health gets access to funds. Also, the new set of shareholders provides greater financial flexibility to Harvest Health. It will get access to more resources for investment in key markets that comprise Pennsylvania, Maryland, Florida, and Arizona.

Harvest Health increases the footprint

The merger is subject to the receipt of regulatory nod and waiver or satisfactory closure of the customary conditions for the transactions. Following the merger, Harvest Health will increase its footprint by the addition of 7 potential retail licenses in California, three open retail locations, two open retail locations in Iowa, and five open retail locations in Washington.

Changes in board and management

To enhance shareholder value in the long term, the company made certain changes in its executive team and simplifies its business model. Executive Chairman – Jason Vedadi at Harvest Health relinquished his role and also resigned from the board. This change came into effect on March 11, 2020. However, he will continue as a strategic advisor to the company. Mr. White will head the executive team at Harvest Health.

Jason said he would help Harvest Health to transition into a multi-state cannabis firm. With the strength of the management team at Interurban Capital and on closing the financing, Harvest Health is better positioned to continue development efforts. He said it is time for him to leave the company and allow it to grow under the leadership of Mr. White. Jason will continue to provide advisory services depending on the need.

Mark Barnard, the current board member, will take charge as the chairman of the board. His previous stints include executive roles at Unilever and Diageo PLC.

Categories
Marijuana

Harvest Health & Recreation Inc. (OTCMKTS:HRVSF) Signs A Management Services Contract With Your Farmacy

On September 9, Harvest Health & Recreation Inc. (OTCMKTS:HRVSF) announced the signing of a new state-approved management services agreement with Maryland dispensary, Your Farmacy-CWS. This will give Harvest Health and Recreation the right to run a medical retailer.

Enhancing footprint in Maryland

The Lutherville-Timonium MD medical dispensary that is 3,120 sq. ft. will be transformed to operate as a Harvest Health cannabis retail store. The company is popular for its best-in-class operations as well as industry standards for marijuana products aimed at bettering the community.

Following the agreement, the company will increase its presence in Maryland which further validates its position as a top medical cannabis company on the east coast. This is in addition to its significant footprint in the western region of the US. Currently, the Arizona-based cannabis company has rights to run a medical marijuana store in Rockville as well as a cultivation and processing site in Hancock.

Bringing quality cannabis experience and products to Maryland

According to the Harvest Health Executive Chairman, Jason Vedadi, Maryland is an important market for the medical cannabis industry. He added that the company is delighted to bring its high-quality cannabis products and experiences to patients of Maryland. Vedadi said that company’s operation team was excited to build on the exceptional work that Your Farmacy has been doing for patients in the community. The company will continue to develop Your Farmacy’s medical cannabis services with its vast experience and deep knowledge in the industry.

Harvest Health has shown dedication towards creation, acquisition, and expansion of its brands and distribution across the US. This ensures products are accessible to customers and patients looking for premium cannabis experiences they can be confident with.

With the signing of the transaction the company now increases its footprint for holding licenses for the right to run over 210 facilities. Out of these facilities around 130 are retail stores distributed across 18 states in the US. The company has been growing its wholesale and retail footprint since 2011through acquisition and creation of leading brands.

Pin It on Pinterest