NEWS BRIEF

High Times revises deal to buy CA marijuana retail stores from Harvest

High Times Holding Corp.’s agreement to buy planned and operating California dispensaries from multistate operator Harvest Health & Recreation has been cut to 10 from the 13 announced in late April.

The Los Angeles-based owner of High Times magazine announced the amended nearly all-stock agreement on Friday.

Two properties cut from the deal are operating dispensaries, which would leave High Times with only three operational outlets in the state from the acquisition.

The $67.5 million deal calls for High Times to pay a maximum of $1.5 million in cash, compared with $5 million of cash in the original $80 million deal.

Here are some additional details:

  • In addition to up to $1.5 million in cash, High Times will pay for the retail outlets with a one-year $4.5 million promissory note at 10% interest as well as $61.5 million of preferred stock.
  • Arizona-based Harvest said in a news release that it is keeping two operating outlets: Harvest of Palm Springs and Harvest of Venice. The parties didn’t disclose the third outlet eliminated from the original purchase agreement.
  • High Times provided this caveat: The transaction is subject to various closing conditions and contingencies, including third-party and regulatory approvals. Additional assets may be excluded from the transaction if required approvals are not obtained.

High Times has been trying to raise money through a small investor Regulation A stock offering, but the offering has been extended multiple times and currently has a June 30 deadline.

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