Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) is now the number-one cannabis operator in the United States after completing the largest cannabis transaction in the country to date.
On Friday, the company said it has completed the US$2.1 billion all-stock deal to acquire Arizona-based Harvest Health & Recreation Inc. (CSE: HARV) (OTCQX: HRVSF) announced in May.
In the second quarter 2021, Trulieve and Harvest reported combined revenue of $317.6 million. For the fiscal year, the company estimates revenue of US$1.2 billion.
Trulieve now owns 149 cannabis stores across 11 states with three strategic regional hubs in Florida, Arizona and Pennsylvania.
“The combined footprint provides Trulieve with a solid foundation for continued growth and scale,” Trulieve CEO Kim Rivers said in a statement.
“We look forward to fully integrating Harvest as we continue to execute on our hub strategy in the U.S., creating an unrivalled brand and reputation in the marketplace and value for our shareholders.”
Harvest has been added to our Trulieve family! 🥳👋
We are working hard to get all Florida Harvest stores re-branded with our green, white and Tru by the end of October with our other states shortly after. 🌿
Help us with welcoming Harvest to the TruFam!💚 pic.twitter.com/bChk6M0Qg6
— Trulieve (@Trulieve) October 1, 2021
In the second quarter of 2021, Trulieve reported revenue of US$215.5 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$94.9 million, while Harvest reported US$102.5 million in revenue and US$28 million in adjusted EBITDA.
Trulieve and Harvest’s cash equivalents reported as of June 30 were of US$289 million and US$71 million, respectively.
Under the Business Corporations Act (British Columbia), Harvest shareholders will receive 0.1170 of a Trulieve share per Harvest share, and issued 50,874,175 shares.
Harvest shares will be delisted from the Canadian Securities Exchange as of market close on Monday, Oct. 4.
Harvest is prominent in Arizona, where the recreational weed market launched in January. There, it operates 15 stores as well as 329,000 square feet of cultivation and processing facilities.
“This combination brings together two companies with depth and scale in key markets, providing a platform for growth for years to come,” says Harvest CEO Steve White.
“Trulieve’s customer centric values match well with Harvest’s dedication to improving lives through the goodness of cannabis.”