Harvest and Verano Announce Mutual Termination of Business Combination Agreement
PHOENIX, March 26, 2020 /PRNewswire/ — Today Harvest Health & Recreation Inc. (CSE: HARV,OTCQX:HRVSF) (“Harvest”) and Verano Holdings, LLC (“Verano”) announced the mutual termination of the Business Combination Agreement dated April 22, 2019 (the “BCA”).
Prolonged obstacles in meeting requirements for state and local regulatory authorities needed to transfer ownership and operational licenses, adverse capital market conditions, a challenging environment for asset sales, all contributed significantly to the decision not to move forward with the pending acquisition. No breakup fees or other considerations are owed by either party as a result of the termination of the BCA.
Given the persistent challenges in consummating this deal and current market conditions both companies felt it was prudent to move forward separately at this time.
Steve White, Harvest CEO
We have tremendous respect for the entire team and operations at Verano Holdings. We wish them well and look forward to possibly working together in the future.
Mr. White continued, “We remain focused on continued development of assets in our core markets including Arizona, Florida, Maryland, and Pennsylvania. Recent capital raising efforts have afforded the company sufficient resources to continue to invest in strategic projects while moving toward profitability.”
This decision was not taken lightly. While both organizations worked very hard to consummate this transaction, significant delays in closing started with the Hart-Scott-Rodino antitrust review process. Those were followed by state and local regulatory complexities in multiple states.
George Archos, Verano Holdings CEO
Now with the COVID-19 pandemic often being dealt with in the very agencies that must approve the transaction, it has become clear that this combination would not be completed within the established timeframe. We look forward to continuing to grow our operations as one of the largest privately held multi-state operators in the U.S.
Harvest will provide an in-depth corporate update on capital, M&A, strategy and outlook during its fourth quarter earnings call on Tuesday, April 7th at 5 PM EDT.
About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator (MSO). Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled one of the largest footprints in the U.S., with rights to operate or support over 140 facilities, including more than 100 potential retail locations across 13 states. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com