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."
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