As the major players in the licensed cannabis industry look towards snapping up other entities to improve shareholder value, Harvest Health & Recreation, Inc. (CSE: HARV; OTCQX: HRVSF) today issued an update on three planned acquisitions.
The company’s attempts to buyout Falcon International Corp, CannaPharmacy Inc, and Verano Holdings LLC were all met with official Department of Justice (DOJ) requests for additional information and documentary materials.
Harvest and Falcon have now completed those document requests, which initiated a month-long waiting period expected to end on Oct. 23. Unless there are additional issues raised by the Department of Justice during that time, the acquisition can then be closed shortly after the waiting period expires.
Compliance with the request for additional information on the CannaPharmacy deal is also now being sent back to the DOJ, with the acquisition planned to close by December.
Meanwhile Harvest and Verano Holdings LLC are in the process of compiling a response to their secondary request, with compliance expected to be achieved by the end of October and the 30 day waiting period likely to expire by late November.
Harvest Health and Recreation’s Chief Executive Officer Steve White commented on the pending acquisition deals this morning:
Aside from Harvest’s three planned deals, anti-trust secondary info requests have slowed down several major acquisitions in the cannabis industry lately, including Cresco Labs’ (CSE: CL; OTCQX: CRLBF) planned buyout of the VidaCann Florida dispensaries.
A similar request from the Department of Justice was recently made as MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF) moves forward with acquiring multi-state operator PharmaCann.
On the expansion front, Harvest also opened a new dispensary in Arizona earlier this week, and is preparing to enter the Maryland market through the acquisition of Your Farmacy-CWS, LLC.
Despite the increased footprint those acquisitions are expected to bring, Harvest’s stock has remained on a downward trajectory over the last five months, currently selling at $3.75 a share.