The company will divest select retail assets in California to High Times Corp.
Harvest Health & Recreation Inc. (CSE: HARV), a vertically integrated cannabis company and multi-state operator in the U.S., today announced plans to divest select retail assets in California to Hightimes Holding Corp. Harvest and its affiliates intend to sell a portfolio of equity and assets with respect to 13 operational and planned dispensaries in California for total consideration including up to $5 million in cash, $7.5 million as a one-year promissory note with 10% interest, and $67.5 million in Series A Preferred Stock issued by High Times. Harvest will retain select retail dispensaries and licenses for potential retail locations in California following completion of this transaction.
We will continue to examine the strategic value of our assets and streamline operations as we move toward achieving our profitability goals.Steve White Chief Executive Officer
This planned divestment of select retail assets in California allows Harvest to focus on optimizing operations and expanding assets in core markets such as Arizona, Florida, Maryland, and Pennsylvania while retaining a smaller retail presence in California" said Chief Executive Officer Steve White.
The transaction is expected to close by June 30, 2020 subject to various closing conditions and contingencies including regulatory approvals and availability of capital consideration. Assets may be excluded from the divestment plan if required approvals are not obtained resulting in an adjustment to the total consideration.
To learn more about Harvest Health & Recreation, visit the company HQ here.
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