QQQ
-6.78
396.69
-1.74%
BTC/USD
-6399.29
47201.76
-11.94%
DIA
-0.37
346.98
-0.11%
SPY
-4.16
461.56
-0.91%
TLT
+ 1.82
150.71
+ 1.19%
GLD
+ 1.39
163.85
+ 0.84%

Harvest And Verano End M&A Talks, May Revisit Deal In The Future

March 26, 2020 4:50 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Harvest And Verano End M&A Talks, May Revisit Deal In The Future

Harvest Health & Recreation Inc (CSE:HARV) (OTC:HRVSF) and Verano Holdings LLC are no longer planning to merge — for now.

The two companies announced Thursday the joint decision to terminate their original deal, which was first announced back in April 2019.
The obstacles imposed by the regulatory authorities, both state and local, added to the extreme conditions suffered by the capital market and an otherwise challenging environment for the sale of assets, contributed to the companies making this decision.

Neither party shall pay a fee for the termination of this agreement.

"Given the persistent challenges in consummating this deal and current market conditions both companies felt it was prudent to move forward separately at this time," Harvest CEO Steve White said in a statement. "We have tremendous respect for the entire team and operations at Verano Holdings."

See Also: Harvest Health CEO Steve White Talks Cannabis Consolidation, Says Canopy-Acreage Tie-Up 'Fantastic'

White said Harvest remains focused on developing assets in its core markets, including Arizona, Florida, Maryland and Pennsylvania. Recent capital raising efforts provided Harvest with sufficient resources to continue investing and move toward profitability, he added.

Benzinga followed up with a Harvest spokesperson who said "both sides hope to revisit the deal in the future."

According to George Archos, Verano Holdings CEO, regulatory hurdles hurt the deal's progress and the decision to cancel the transaction "was not taken lightly."

"While both organizations worked very hard to consummate this transaction, significant delays in closing started with the Hart-Scott-Rodino antitrust review process," Archos explained. "Those were followed by state and local regulatory complexities in multiple states."

The coronavirus (COVID-19) outbreak also stalled progress as government officials have drastically shifted priorities.

"Now with the COVID-19 pandemic often being dealt with in the very agencies that must approve the transaction, it has become clear that this combination would not be completed within the established timeframe," Archos said. "We look forward to continuing to grow our operations as one of the largest privately held multi-state operators in the U.S."

Harvest will provide a corporate update regarding its capital, mergers, and acquisitions, strategy and prospects during its fourth-quarter earnings call on Tuesday, April 7.

Benzinga's Anthony Noto contributed to this report.

Photo courtesy of Harvest Health & Recreation

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

Billion Dollar Trulieve-Harvest Merger Closes, Combined Co. To Hit $1.2B In 2021 Revenue

Billion Dollar Trulieve-Harvest Merger Closes, Combined Co. To Hit $1.2B In 2021 Revenue

Trulieve Cannabis Corp (CSE: TRUL) (OTCQX: TCNNF) and Harvest Health & Recreation Inc. read more
Cannabis Dispensary Roundup: High Tide Expands, Harvest Health, Fluent By Cansortium And Ayr Wellness Each Open Shops In Florida

Cannabis Dispensary Roundup: High Tide Expands, Harvest Health, Fluent By Cansortium And Ayr Wellness Each Open Shops In Florida

High Tide Ramps Up Its Retail Footprint With Three New Ontario Dispensaries, Plans To Open More Stores Canadian cannabis retailer High Tide Inc. (TSXV: HITI) (NASDAQ: HITI) (FSE:2LYA) is continuing on its streak of store openings in Ontario. read more
Harvest Health Opens Yet Another Medical Cannabis Dispensary Ahead Of $2.1B Trulieve Merger

Harvest Health Opens Yet Another Medical Cannabis Dispensary Ahead Of $2.1B Trulieve Merger

Vertically integrated cannabis company Harvest Health & Recreation Inc. (CSE: HARV) (OTCQX: HRVSF) has opened yet another medical dispensary in Florida, on the heel of kicking off cannabis sales at its read more
Cannabis Dispensary Roundup: Harvest Health & Element 7 Expand In PA, Element 7 And Goodness Growth Each Open Stores

Cannabis Dispensary Roundup: Harvest Health & Element 7 Expand In PA, Element 7 And Goodness Growth Each Open Stores

Element 7 Debuts In Marina, California Element 7 is poised to kick off sales at its new store in Monterey County, California. The new shop is located on Reservation Road, in the City of Marina. Grand opening ceremonies are scheduled for Friday and Saturday, August 27 and 28. read more