Harvest Health & Recreation Inc. (CSE: HARV) is expanding operations in its home state of Arizona.
The vertically integrated cannabis company announced Wednesday it acquired Arizona Natural Selections, a weed retailer and cultivator, for a undisclosed amount of stock.
The acquisition gives Harvest access to three cannabis dispensaries, two cultivation sites and pending retail licence all owned by ANC.
In total, the move boosts Harvest’s footprint in Arizona to 14 medical dispensaries, four cultivation sites, and three extraction facilities. On a pro forma basis, including other pending acquisitions, the company said it has a total of 22 vertical licences in Arizona.
“We are excited to further deepen our operations in our home state of Arizona expanding our cultivation, processing, and retail operations,” Harvest CEO Steve White said in a press release.
“We will look to further the existing reputation and operational excellence Arizona Natural Selections has established across the state and are eager to welcome new members into the Harvest family.”
The three cannabis retail stores currently open for business under the Arizona Natural Selections brand are located in Peoria, Scottsdale and Mesa, Arizona. The fourth store will be an additional location in Mesa.
The deal will also provide Harvest with two operational cultivation facilities: a 55,000 square foot indoor cultivation and production facility in Phoenix, and a 322-acre site, which 25 acres are zoned for cannabis with 70,000 square feet of greenhouse in Willcox. The acquisition includes the Darwin product line of precision-dosed cannabis products.
Arizona Natural Selections cannabis dispensary in Scottsdale, Arizona. Photo courtesy of ANS
Medical cannabis was legalized in Arizona via a 2010 ballot initiative that passed by a 50.1 per cent vote.
In 2016, voters in the Grand Canyon State narrowly rejected Proposition 205, an initiative to legalize the recreational use of cannabis, by a 51.3 per cent vote against.
However, support for the Arizona Marijuana Legalization Initiative is gaining steam to legalize recreational cannabis in the U.S. 2020 election through a ballot.
The campaign for the initiative has gained US$1.6 million in donations, and already has surpassed 150,000 signatures, according to Smart and Safe Arizona.
Under Arizona’s secretary of state rules, 237,645 valid signatures are required by July 2, 2020 to get the initiative certified for the 2020 ballot.
Harvest Health is the leading cannabis company in Arizona by store count and cultivation footprints. The company has presence in seven states in total and plans to boost that to 13 states by the end of 2020, according to its website.
Shares of Harvest Health are up 2 cents to $3.26 on the Canadian Stock Exchange as of Feb. 19.
Read more: Cannabis market will triple by 2024, pot stocks will rebound: report
"We are excited to further deepen our operations in our home state of Arizona expanding our cultivation, processing, and retail operations," said Harvest CEO Steve White. https://t.co/kAEKRus15t pic.twitter.com/Ja0SuyPvcH
— Trulieve Arizona (@trulieve_az) February 19, 2020
Top image courtesy of Harvest Health
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