Harvest, a vertically integrated cannabis company and multi-state operator in the U.S., announced the completion of the initial closing of the divestment of select retail assets in California to Hightimes Holding Corp., parent company of High Times magazine.
Per the terms of the most recently revised agreement, at the initial closing, Harvest and its affiliates sold a portfolio of equity and assets with respect to eight operational and planned dispensaries in California for total consideration of $61.5 million, consisting of $1.5 million in cash and $60.0 million in Series A Preferred Stock issued by Hightimes.
At a second closing, which is subject to various closing conditions and contingencies including third party and regulatory approvals, Harvest and its affiliates intend to sell additional equity and assets with respect to two planned dispensaries in California for total consideration of $6 million in Series A Preferred Stock issued by Hightimes.
The agreement was initially announced on April 28, 2020 and June 12, 2020.
Harvest has become one of the leading cannabis retailers in the U.S. The company is headquartered in Tempe, Arizona.
AP Photo Richard Vogel