Harvest Health & Recreation (HRVSF) has closed the books on its latest acquisition. The company announced on Monday that its merger with privately held Interurban Capital Group was completed the previous Friday. The closing of the deal gives Harvest control of the Have a Heart chain of dispensaries.
Last week Harvest, in announcing that the sale was moving forward, said it was to pay $85.8 million in cash and stock for its new asset. That price includes just over $19.1 million in debt assumption.
Image source: Getty Images
Have a Heart currently operates 10 active recreational and medical cannabis dispensaries. Five are located in Washington state, three are situated in California, and Iowa is home to two. Harvest said the acquisition gives it another seven "potential retail licenses" in California; it is not immediately clear when these sites will be licensed and/or open for business.
This tally will expand what Harvest self-describes as "one of the largest footprints" in the U.S. for cannabis companies. Prior to the Have a Heart acquisition, according to Harvest, it had the rights to operate over 210 marijuana business facilities, including roughly 130 retail sites.
Image source: Have a Heart.
In the press release trumpeting the buyout, Harvest said that it "provides access to capital and a new set of shareholders that will provide Harvest with greater financial flexibility and resources to invest further in key markets such as Arizona, Florida, Maryland, and Pennsylvania," indicating that it is eager to keep building scale.
On Monday, Harvest was a casualty of the intense bear market -- shares of the marijuana stock fell by slightly more than 27%.
