April 9, 2019—PHOENIX—PRESS RELEASE—Harvest Health & Recreation, Inc., a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., has announced it has entered into a binding, definitive agreement to acquire CannaPharmacy, Inc., subject to satisfaction of customary closing conditions, including receipt of regulatory approvals in the relevant states. CannaPharmacy owns or operates (through management companies) cannabis licenses in Pennsylvania, Delaware, New Jersey and Maryland, and holds a minority interest in a pending licensee in Colombia. Harvest expects that the transaction will be accretive to Harvest’s 2020 revenue and EBITDA.
“All of our efforts back up our three core objectives; to expand and deepen our retail and wholesale footprint, build national brands and continue our path to profitable growth, and this CannaPharmacy deal is no different,” said Jason Vedadi, executive chairman of Harvest. “Harvest has led the cannabis market in the Western United States for years, and this acquisition will similarly widen and extend our U.S. foothold to the East Coast. When you add that to our existing dominant position in the Pennsylvania and Maryland markets, acquisition of CBx and its suite of brands, as well as our pending acquisitions of Falcon and Verano, with its holdings throughout the eastern seaboard and brands and infrastructure to leverage, we are looking at Harvest becoming a household name throughout the region in a matter of months.”
Expanding Unrivaled National Footprint
CannaPharmacy has operations in four contiguous northeastern U.S. states. The licenses and assets of CannaPharmacy will add to Harvest’s extensive national footprint, already the country’s largest and deepest in terms of licenses and facilities permitted across 17 states and Puerto Rico. Upon closing of this transaction and closing of its previously announced acquisition of Verano Holdings LLC, Harvest will hold licenses that allow it to operate