Harvest avoids 42% dilution after Verano deal terminated, but guidance cut likely on April 7

Another deal made in different times failed.

Harvest’s planned acquisition of Verano was called off, with both companies citing regulatory delays (exacerbated by the coronavirus response) and declines in capital markets.

Net implications:

  • Harvest avoids 42% dilution (161 million shares), bringing the Arizona company’s current shares outstanding today to 387 million.
  • The company’s 2020 sales guidance will come down on April 7.
  • Harvest will articulate a new strategy focused on getting to profitability with the current resources.

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