Harvest Health Closes Divestiture Of Arkansas Assets

Cannabis company Harvest Health & Recreation Inc. HARV HRVSF has divested its Arkansas-based store and cultivation assets.

The price tag of assets owned and operated by Natural State Wellness Dispensary LLC, and Natural State Wellness Enterprises LLC was $25 million.

The buyer remained undisclosed.The Tempe-headquartered company obtained roughly $12.9 million in cash for its interests, once $1.9 million in loans related to the assets was repaid.

Harvest CEO Steve White is "pleased" to finalize the divestiture, citing the company's plan to streamline its business and focus "on core markets."

"The additional cash on our balance sheet adds flexibility at a time when we are pursuing growth opportunities such as recreational sales in Arizona," he added.

The move comes months after wrapping up the sale of its eight California dispensaries to High Times Holding Corp. for $61.5 million.

Harvest noted it "maintains its 2020 guidance" of over $225 million in revenue, following the finalization of current assets' divestiture.

The company recently reported generating $61.6 million in revenue for the third quarter, up by 86% compared to last year's corresponding quarter.

Meanwhile, it has been increasing its Pennsylvania footprint by opening stores in Cranberry Township and, most recently, in King of Prussia. In addition, Harvest launched its 15th retail location in Arizona in September.

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