High Times Acquires 13 Dispensaries From Harvest Health In $80M Deal
Hightimes Holding Corp. is expected to buy up to 13 California dispensaries for $80 million in a cash and stock deal.
According to a filing with the U.S. Securities and Exchange Commission, the company — known for publishing the hemp-focused magazine of the same name — inked the deal with Harvest Health & Recreation (CSE:HARV) (OTC:HRVSF).
The terms of the deal include $12.5 million in cash and $67.5 million in preferred stock.
High Times intends to remake the dispensaries in its own image. Per a press release, the Los Angeles-based company expects to "transform the cannabis retail stores to become High Times destinations."
This will include a revamp of the existing design "to fit the High Times aesthetic" with the company's own logo and color scheme.
"We've long supported Harvest and the other cannabis-retail-trailblazers as they pushed forward despite changing legislation, insurmountable licensing fees, political stigma and, frankly, through a process that was designed to be difficult," said High Times Executive Chairman Adam Levin.
High Times is acquiring the dispensaries on the heels of another purchase. Last month, it picked up Humboldt Heritage for an undisclosed price.
"We have enormous respect for the Harvest brand and look forward to ushering in the next generation of retail experience with Harvest as a significant shareholder in our company," Levin said. "We look forward to finding a myriad of ways to work with Steve and the team at Harvest."
Harvest Health & Recreation is a multistate operator that is no stranger to expanding in its own right. The Tempe, Arizona-based company has grown its wholesale presence throughout the U.S. while also providing services to retail dispensaries.
"This transaction allows Harvest to invest in one of the most iconic brands in the industry," said Harvest CEO Steve White.
"As one of the pioneers of the regulated cannabis ecosystem, we have always admired the work of High Times and are excited to watch the High Times brand flourish, as they poise themselves to enter the cannabis distribution and retail spaces."
Versión en Español: High Times Compra 13 Dispensarios de Marihuana por USD$80 Millones
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.