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Harvest Health Finalizes Deal To Jettison 8 Dispensaries To High Times For $61.5M

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Harvest Health Finalizes Deal To Jettison 8 Dispensaries To High Times For $61.5M

Cannabis company Harvest Health & Recreation Inc. (CSE: HARV) (OTCQX: HRVSF) has wrapped up its dispensary sale to High Times Holding Corp.

The deal, initially announced in April, underwent changes earlier this month when Harvest disclosed its plan to sell only 10 out of the previously announced 13 dispensaries for $67.5 million.

At the initial closing of the agreement, Harvest and its associates divested some eight dispensaries in consideration of $61.5 million.

According to Tuesday’s press release, the transaction includes $1.5 million in cash and $60 million in High Times’ Series A Preferred Stock.

Harvest intends to divest the remaining two dispensaries at a second closing for an additional $6 million in High Times’ Series A Preferred Stock.

Harvest said it would hold on four operating dispensaries, including stores in Grover Beach, Napa, Palm Springs, and Venice.

The Tempe-headquartered MSO operates across seven states, overseeing 35 store locations, including retail locations in Arizona, Michigan, and Arkansas.

As per its latest earnings report, the first-quarter revenue reached $45 million, representing a 134% year over year increase.

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