The merger of Trulieve Hashish and Harvest Well being & Recreation creates a hashish large

Trulieve cannabis aims to buy Harvest Health & Recreation Inc. in one $ 2.1 billion, All-Stock Exchange. If this deal goes through, Harvest Health will become known as the defining brand in the cannabis market.

In particular, the combined forces of Trulieve and Harvest Health would have dominant markets in Arizona and Florida. With Arizona recently legalized and Florida’s medical cannabis market is growingThe sales potential is enormous here. In addition, the company would have a leading presence in Pennsylvania, Maryland, and seven other states.

Not to mention the combination of these brands would create one of the largest cannabis companies in the world. Some analysts have estimated that both companies will have sales of nearly $ 1.24 billion in 2021, with most of the sales coming from Trulieve.

“Today’s announcement marks the largest and most exciting acquisition in our industry to date, creating the most profitable multi-state public operator. It is important that our companies share similar customer values ​​and focus on penetrating deep into the core markets. This combination gives us the opportunity to leverage our respective strong foundations and advance ourselves with an unparalleled platform for future growth, ”said Kim Rivers, CEO of Trulieve, in a Press release.

“Harvest gives us an immediate and significant presence in new and established markets and accelerates our entry into adult use in Arizona. Trulieve and Harvest are leaders in our markets and are known for our innovation, brands and operational expertise with real depth and size in our businesses. We look forward to providing world-class service to patients and customers on a wider national scale as we create an iconic U.S. cannabis brand. “

The announcement is big news for cannabis investors too. Each share of Harvest Health would also receive 0.117 shares of Trulieve. From May 10th Trulieve’s share decreased 2.3 percent to $ 40 Harvest health rose 17 percent to $ 4.18.

Andrew Partheniou, GMP analyst at Stifel, stated that this would be the largest cannabis transaction in United States history. He also mentions that Trulieve was known to have traded peers at lower prices because it is based in Florida.

While this deal is still in its infancy, Harvest Health is expected to file approval in the third quarter of this year.

With Expand the legalization of cannabis All around us, you can expect demands to grow much faster than the industry can handle. Fortunately, this is predictable and giants like Trulieve can maneuver through this ever-changing landscape.

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