Trulieve to acquire Harvest for $2.1 billion to create the biggest cannabis company
Trulieve Cannabis Corp is set to acquire Harvest Health and Recreation for $2.1 billion, paving the way to create the largest cannabis company in the U.S.If approved by the regulators the combined business will have operations in 11 states, comprising of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets
Trulieve Cannabis Corp is set to acquire Harvest Health and Recreation for $2.1 billion, paving the way to create the largest cannabis company in the U.S.If approved by the regulators the combined business will have operations in 11 states, comprising of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets.Trulieve is the largest Florida cannabis company with almost 50% market share and is a licensed operator in California, Massachusetts, Connecticut, Pennsylvania, and West Virginia as well. Of its 87 dispensaries, 82 are located in Florida. It is listed on the Canadian Securities Exchange and the OTCQX Best Market. Forbes reported that the Harvest acquisition will help Trulieve add 39 dispensaries in nine states, 15 of which are in Arizona, nine in Pennsylvania, eight in Florida, and four in California.Trulieve CEO, Kim Rivers welcomed the acquisition and said, “Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult-use space in Arizona. We look forward to providing best-in-class service to patients and customers on a broader national scale as we create an iconic US cannabis brand.”Even as cannabis remains a Schedule I drug, the Rohrabacher–Farr amendment prohibits federal prosecution of individuals complying with state medical cannabis laws. Since cannabis cannot be transported across state lines, Trulieve’s strategy involves scaling up its operations across various regions. Recreational sales exist in Arizona whereas Florida and Pennsylvania are known for a strong medical market for cannabis, and are expected to legalize adult use soon.Senator Chuck Schumer announced that he would soon come up with a bill for the legalization of cannabis and the expungement of records. Rivers believes that when federal law changes, her company’s operations will help fuel a national distribution model.
