Marijuana Business Magazine April 2019

Marijuana Business Magazine | April 2019 16 Harvest Health Buys Verano for Record $850M, Expands Arizona Footprint in Separate Deal Arizona-based Harvest Health & Recreation reached a binding agreement to acquire Verano Holdings of Chicago for $850 million, a deal that’s considered to be the largest acquisition inked in the U.S. cannabis industry to date. The deal surpasses the previous record for a U.S. acquisition in the cannabis industry–MedMen’s $682 million all-stock purchase of PharmaCann in October. Upon closing, the all-stock deal with Verano will give Harvest one of the largest footprints among multistate cannabis operators with 123 dispensaries in 16 states. “The acquisition is the next step in Harvest becom- ing the largest cannabis company in the world,” Harvest CEO Steve White said. Verano, which acquired a Massachusetts cannabis company in February, was attractive to Harvest because it has stakes in 10 operating facilities across the United States and more than 45 licenses under development. All told, the deal puts Harvest on pace to have more than 70 dispensaries, 13 cultivation facilities and 13 manufacturing facilities operating by the end of 2019. Separately, Harvest struck an agreement to acquire six additional licenses in Arizona, which would give the company 16 licenses in the state once the deal closes: 11 open dispensaries, two cultivation facilities and one processing facility. Harvest’s agreement is with Devine Hunter, formerly the state’s second-largest license holder, for an undisclosed amount. Massachusetts Giant Buys California Cannabis Company for $30.5 Million Massachusetts-based Curaleaf , a vertically integrated multistate marijuana company, acquired California’s Eureka Holdings for $30.5 million, with $10 million paid in cash and the balance in stock. Eureka Holdings operates a cultivation facility in the Salinas Valley in addition to existing facilities and could have an eventual cultivation footprint of 270,000 square feet capable of producing 50,000 pounds annually. Eureka is also developing three dispensaries in the Golden State. Green Thumb Snags Owner of Beboe Brand Green Thumb Industries of Chicago closed its acquisition of Los Angeles- based For Success Holding , owners of the Beboe marijuana products brand. The value of the deal, described as “nonmaterial” by Green Thumb, was not disclosed. For Success and Beboe were co-founded by fashion industry executive Clement Kwan and tattoo artist Scott Campbell. 4Front Adds to Portfolio 4Front Holdings , a U.S. cannabis retail and brand company based in Phoenix, expanded its national footprint with acquisitions in Massachusetts and Arizona. 4Front acquired Healthy Farms , which has two dispensaries and a cultivation facility in Massachusetts, and PHX Interactive , owner of Greens Goddess in Phoenix, which holds a vertically integrated license. Terms of the deals were not disclosed. Plus Products Raises $19 Million Plus Products , an infused edibles company in San Mateo, California, closed a previously announced private placement worth $19 million. Canaccord Genuity acted as lead agent, while Gotham Green Partners and Stable Road Capital were two of the lead investors in the private placement. Plus will use the proceeds for working capital and other general corporate purposes. Cresco’s Hemp Attempt Chicago-based Cresco Labs , one of the largest multistate operators in the United States, launched a subsidiary, Well Beings , aimed at taking the company to all 50 states and reaching new customers with sales of federally compliant CBD products. Well Beings will have its own product line and produce CBD versions of Cresco Labs’ house of branded products, including Cresco, Remedi and Mindy’s Edibles. U.S. DEVELOPMENTS Company News | U.S. & Canada Recent deals, acquisitions and other announcements from North American cannabis companies By Omar Sacirbey