Harvest Health & Recreation to Sell California Retail Operations to Hightimes Holding Corp
Posted on 04/28/2020
Hightimes Holding Corporation signed a deal for US$ 80 million to purchase up to 13 California cannabis dispensaries, most of which are not yet operational, from listed company Harvest Health & Recreation. The deal is being broken out by up to US$ 12.5 million in cash and US$ 67.5 million in preferred stock (675,000 shares of 16% Series A), with the final price based upon the number of licenses transferred. The preferred stock is convertible at US$ 11 into Hightimes stock, though the stock will be split 11-1 effective June 1, 2020.
The deal will make Hightimes one of the largest California marijuana-branded retailers.
Harvest Health & Recreation disclosed that it runs four cannabis dispensaries in California, with locations in Grover Beach, Napa, Palm Springs, and Venice. Harvest Health & Recreation acquired two Have a Heart dispensaries when it purchased Interurban Group, including locations in Oakland and Coalinga.
Schwazze
Denver-based Schwazze, formerly known as Medicine Man Technologies Inc., disclosed on April 20, 2020 that it finalized its acquisition of Mesa Organics and its Purplebee’s business. Mesa Organics operates four dispensaries throughout southern Colorado in Pueblo, Ordway, Rocky Ford, and Las Animas.