by Geoff Fox
Harvest Health and Recreation Inc., the company with a medical cannabis growing and processing plant on South Street in Hancock will be sold to Florida based Trulieve Cannabis Corp. in a $2.1 billion deal. The deal was announced on Monday, May 10.
Under the terms of the Arrangement Agreement, shareholders of Harvest will receive 0.1170 of a subordinate voting share of Trulieve for each Harvest subordinate voting share or equivalent held, representing a total consideration of approximately $2.1 billion based on the closing price of the Trulieve Shares on May 7.
The transaction was unanimously approved by the Boards of Directors of both Trulieve and Harvest.
According to Mayor Tim Smith, the transaction does not affect the relationship the town had with Harvest and everything is going forward as planned.
The only thing different is a different company now owns Harvest.
Once the transaction is complete, the combined business will have operations in 11 states, comprised of 22 cultivation and processing facilities with a total of 3.1 million square feet, and 126 dispensaries servicing the medical and adult-use recreational cannabis markets.
Trulieve is a multi-state operator with a focus on the northeast and southeast regions of the United States, while Harvest is a multi-state operator with a focus on the west coast and northeast regions of the country.
The two companies have built “deep, vertically integrated operations in their key markets,” becoming operators in the U.S., the world’s largest regulated cannabis markets, Trulieve said in a press release.
“We are thrilled to be joining Trulieve, a company that has achieved unrivaled success and scale in its home state of Florida,” Harvest CEO Steve White said in the release.
White said Harvest believes their track record of identifying and developing attractive market opportunities combined with a recent successful launch of adult use sales in Arizona would add “tremendous value” to the combined organization as it expands and grows in the coming years.
Trulieve CEO Kim Rivers said the announcement is the largest and “most exciting” acquisition so far in the cannabis industry and creates the most profitable public multi-state operator.
“Importantly, our companies share similar customer values with a focus on going deep in core markets,” she said. “This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth.”
Harvest has recently agreed to buy the South Street facility from the Town of Hancock and said they plan to double their workforce here.