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Thursday, Oct 21, 2021
Mugglehead Magazine
Cannabis & psychedelics industry news based in Vancouver, B.C.
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Trulieve acquires Harvest, becomes largest cannabis operator in US

Trulieve started by dominating Florida’s medical market and now owns 149 stores across 11 states

Trulieve becomes largest, most profitable cannabis operator in the US
Trulieve is dominant in Florida, where it has 82 stores and serves half of the state’s medical market. Photo via Trulieve

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.”

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.

Read more: Harvest Health deal to test Trulieve’s industry-leading profits

Read more: Trulieve Cannabis to buy Harvest Health in US$2.1B mega-deal

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 pot shop in Venice, California. Photo via Harvest.

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.”

 

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