U.S. Markets open in 37 mins

Harvest Health & Recreation Buys Nevada Grow Facility From MJardin Group In $35M Deal

Andrew Ward

Multistate operator Harvest Health & Recreation Inc (OTC: HRVSF) said Thursday that it has agreed to purchase a 32,000-square-foot subruban Las Vegas cultivation facility from the Cheyenne, Nevada-based management platform MJardin Group Inc (OTC: MJARF). 

The sale price is $35 million, with $30 million funded Dec. 31, Harvest Health said. 

Harvest Health's Rationale 

The acquisition should allow Tempe, Arizona-based Harvest to enhance its chances of reaching profitability, according to the company. 

"We expect this opportunistic acquisition to support our expanding retail asset base in Nevada and afford higher margins and profitability through vertical integration with some of our pending acquisitions in the state," CEO Steve White said in a statement. 

What's Next

Harvest said it will fund the final $5 million of the purchase price to MJardin upon completion of the deal. 

Harvest Health shares were down 1.08% at $3.12 at the time of publication Thursday. 

MJardin shares were down 7.44% at 17 cents. 

Related Links:

Harvest Health Posts M Quarterly Net Loss, Says It's 'Reflective Of Investments' For Growth

Harvest Health CEO Discusses The Company's 'Head Start' In CBD

0

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.