Trulieve Cannabis Co. Completes HSR Milestone, Moves One Step Closer To $2.1B Harvest Health Deal

Trulieve Cannabis Co. Completes HSR Milestone, Moves One Step Closer To $2.1B Harvest Health Deal

Vertically integrated cannabis company Trulieve Cannabis Corp. TRUL TCNNF is one step closer to completing its merger with Harvest Health & Recreation Inc. HARV HRVSF in a $2.1 billion deal.

The Tallahassee, Florida-based company reported Tuesday that the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with the previously announced proposed acquisition of Harvest has expired.

Under the terms of the agreement, Trulieve agreed to purchase all of Harvest's issued and outstanding subordinate voting shares, multiple voting shares as well as super-voting shares.

In return, Harvest shareholders will receive 0.1170 of subordinate voting shares of Trulieve for each Harvest share priced at $4.79.

Upon closing of the acquisition – which is subject to receiving all regulatory approvals and Harvest shareholder vote which is expected to take place in the third quarter of 2021 - the shareholders of the Tempe, Arizona-based cannabis retailer will hold approximately 26.7% of Trulieve's issued and outstanding pro forma shares (on a fully diluted basis).

In addition, the combined company will have operations in 11 states. Apart from a total cultivation and processing capacity of 3.1 million square feet spread across 22 facilities, the newly formed cannabis giant will run 126 retail locations selling both medical and recreational cannabis, including the two new medical marijuana shops in Florida that Harvest Health launched last week.

"Completion of the HSR milestone is exciting, and we will continue to work toward closing this strategic transaction," Kim Rivers, CEO of Trulieve, said Tuesday. "Upon closing, we expect to leverage the expertise and resources of the combined companies to realize meaningful scale and expansion for years to come."

Photo by Elsa Olofsson on Unsplash

Posted In: Kim Riversmerger and acquisitionCannabisM&ANewsPenny StocksRetail SalesSmall CapMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.