As nationwide legalization efforts are spotlighted in the ongoing Presidential campaign and individual states gear up to vote on legalization bills next year, cannabis growers in the U.S. are looking towards new expansion efforts.
Gearing up to capitalize on future growth in the industry, Harvest Health & Recreation, Inc. (CSE: HARV; OTCQX: HRVSF) just secured a new financing plan to fund acquisitions, license renewals, and continued overall operations.
The terms of the financing deal through an investment fund managed by Torian Capital Partners will see Harvest netting three tranches of $75 million, up to a total possible loan amount of $225 million.
A first tranche is due to arrive within the next month, issued as a secured note private placement. Each of the three staggered funding tranches will mature two years after issuance, and come with 8% annual interest rates due to be paid quarterly.
Discussing the company’s new fundraising effort, Harvest Health & Recreation Chief Executive Officer Steve White commented:
That financial win follows a recent company setback in Pennsylvania, where the state’s Department of Health denied the grower/processor renewal permit for Harvest’s AGRiMED Industries of PA cultivation site.
Harvest released a statement last week regarding the Department of Health’s decision and what expected impact it will have on state-wide operations, which can be read in full here.
In other company news, Harvest just announced two major expansion plans in different states. The company is now acquiring the Arizona-based Urban Greenhouse dispensary and greenhouse, as well as moving into Utah’s new medical cannabis industry.
Local spin-off Harvest Utah was one of only eight companies to be granted approval to grow medical cannabis by the state’s Department of Agriculture and Food.
The program will remain small with only eight cultivars for the first year as the Department of Agriculture and Food monitors supply versus demand, and may additionally grant another two licenses in the coming months.