"Trulieve and Harvest are leaders in our markets, recognized for our innovation, brands, and operational expertise with true depth and scale in our businesses," Rivers said in the announcement. The company also has four licenses for shops it plans to eventually open in the state, three this year and one in 2023. Fewer than 130 shops are actually operating. Harvest has 15 operating shops in Arizona out of the 143 total dispensary licenses in the state.
Harvest dispensary full#
In February, the first full month that recreational marijuana was sold, Harvest saw sales jump from 45% to as much as 248% at its Arizona shops. "It certainly navigated the early start of rec (recreational sales) in Arizona rather well." "But we realize Harvest is a fully fledged operation with intrinsic value beyond just assets," Zuanic said. He said Trulieve could have looked for better deals to acquire dispensaries in New York or New Jersey, which are expected to be big markets because of their population. analyst Pablo Zuanic said in a note to investors after the announcement Monday. 1 in Pennsylvania, besides adding to its dominant Florida franchise," Cantor Fitzgerald & Co. 1 status in Arizona and gets close to No. "With the Harvest deal, Trulieve gains No. Some analysts thought Trulieve could have found a better acquisition target but also noted the dominance the newly merged company will represent in the U.S. over-the-counter market, where shares saw a similar drop Monday. The stock uses the ticker TCNNF on the U.S. Trulieve shares, which use the ticker symbol TRUL, closed Friday at $49.70 per share and were down slightly on the news Monday. over-the-counter market, where shares saw a similar bump Monday. The stock uses the ticker HRVSF on the U.S. They opened Monday at $5.20 on the early-morning announcement. Harvest shares, which use the ticker symbol HARV, closed Friday at $4.35 per share. Watch Video: Recreational marijuana sales begin in Arizona Harvest stock shot up Monday on the news, as the proposed purchase price is about a 34% premium to what the company's value was Friday when the markets closed.Įveryone who owns a share of Harvest stock will get 0.117 of a share in the new Trulieve company. While Trulieve doesn't currently own any shops in Arizona, the companies do have some overlap in Florida and Pennsylvania and California.īoth companies have stock traded on the Canadian market and the over-the-counter market in the U.S. Similar deals have taken about a year to complete.
The deal needs approval by Harvest shareholders and various regulators. The new deal with Trulieve includes a $100 million breakup fee if either company fails to uphold its end of the deal. Harvest has been involved in big merger negotiations before, with an $850 million deal to purchase Chicago-based Verano Holdings announced in early 2019 before that deal fell apart amid the pandemic last year. "We will just be able to deliver better products and better experiences to customers across the company," White said.
On the call with analysts, White said that the combined company will benefit from the operational knowledge both companies have accumulated on their way to becoming market leaders.
"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 announcement. cannabis company based on the combined retail and farming footprint, and it also would be the most profitable marijuana company in the nation, Trulieve and Harvest said. If they merged today, the combined entity would be the largest U.S. "We are excited to have them as partners moving forward." "Our teams have worked incredibly well together," she said. Rivers called the companies a "natural fit." "It was seamless and it was really impressive to watch." "We were blown away as I’m sure most of you were in terms of their execution and just the way they moved into the recreational market here in Arizona," Trulieve CEO Kim Rivers said on a conference call with analysts Monday. has 84 operating shops in four states, with 79 of them in Florida. today has 39 operating shops in five states. If the deal goes through the merged company will have about 126 dispensaries and operations in 11 states, according to the announcement. The blockbuster deal comes just a few months after recreational sales of marijuana launched in Arizona following passage of Proposition 207 in November, allowing anyone 21 or older to possess up to an ounce of marijuana and permitting medical dispensaries to sell it to adults. Trulieve, the largest marijuana company in Florida, is buying Harvest, the largest marijuana company in Arizona, in a $2.1 billion deal that could create the biggest cannabis company in the nation, the companies announced early Monday. View Gallery: Harvest Health and Recreation's marijuana facility in Camp Verde
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