Proactive Investors - Run By Investors For Investors

Harvest Health to acquire Verano for $850M in stock, creating one of the largest US cannabis chains

Harvest Health gains the right to operate up to 200 facilities across 16 states
A big fish eating a smaller fish
Harvest is ranked as the third-largest cultivator in the US and currently owns licenses for more than 140 facilities in the US

Harvest Health & Recreation Inc (CSE:HARV) (OTCQX:HRVSF), a vertically integrated cannabis company, announced Monday that it has entered into an agreement to acquire privately-held Verano Holdings LLC for US$850 million in stock.

The combined company will be one of the largest multi-state operators in the United States, measured by licenses held and facilities permitted.

Upon completion of the transaction and regulatory approval, Harvest will hold licenses that will allow it to operate up to 200 facilities in 16 states and territories across the country, including 123 retail dispensaries.

Harvest’s planned acquisition of Verano will lead to total cultivation expansion capacity of 900,000 square feet in Illinois, Nevada & Maryland.

Harvest Health CEO Jason Vedadi said in a statement that the combination with Verano fit perfectly with the company’s vision of creating “the world’s most valuable cannabis company.”

READ: Zynerba’s 4Q shows momentum as it heads into key clinical trial

“This is a natural match between like-minded entrepreneurs who have built our companies from the initial facilities into two of the largest multi-state operators in the United States,” said Verano co-founder and CEO George Archos.

The newly combined company plans to continue hubs of operation in both Arizona and Illinois and merge key leadership talent. It is also likely to lead to hiring for approximately 300 new positions in 2019 with a focus on hiring minorities, women and veterans, said the company.

As cannabis restrictions fall in one state after another, cannabis companies are racing to build scale and muscle.

“We are confident that this is an opportunity to continue to leverage each of our company’s strengths and drive continued shareholder value, while at the same time achieving the scale we know will give us a leadership position in one of the largest cannabis markets in the world,” said Vedadi.

It is anticipated that the acquisition will close in the first half of 2019.

Since its founding in 2011, Harvest has grown its footprint every year, has been ranked as the third largest cultivator in the U.S. and currently owns licenses for more than 140 facilities across the US.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full HARV profile View Profile

Harvest Health & Recreation Inc. Timeline

Related Articles

cannabis plant
May 05 2019
The cannabis company invests in income-producing property and provides financing solutions and capital investment to service the blossoming cannabis industry
medicinal cannabis concept
January 30 2019
Zelda has released its December quarterly report confirming multiple trials are on track.
A cannabis plant shown next to an oil-based product
April 23 2019
THC is executing a medicinal cannabis strategy in Australia, New Zealand and Canada and is looking to Asian markets.
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use