Hightimes Holding Corp., the owner of High Times magazine, announced it will acquire 13 planned and operational California retail operations from Harvest Health & Recreation Inc.
The existing retail outlets and planned stores are in Oakland, Palm Springs, San Francisco, Santa Cruz and other areas of California, according to a regulatory filing.
In a press release, Hightimes Holding said it will become one of the largest branded cannabis retailers in California overnight.
Hightimes Holdings plans to create what it calls High Times destinations, including revamping the existing design, rebrand the dispensary to fit the High Times aesthetic and experience. The High Times logo will cap the branding experience, the company said in the press release.
The company is paying $5 million in cash, $7.5 million in the form of a one-year, 10%-interest promissory note and $67.5 million in preferred stock, according to a Harvest news release. The parties hope to close the deal by June 30.
“We’ve long supported Harvest and the other cannabis-retail-trailblazers as they pushed forward despite changing legislation, insurmountable licensing fees, political stigma and, frankly, through a process that was designed to be difficult,” said Adam Levin, Hightimes Holding Corp.’s Executive Chairman, in the press release.
“We have enormous respect for the Harvest brand and look forward to ushering in the next generation of retail experience with Harvest as a significant shareholder in our company. We look forward to finding a myriad of ways to work with Steve and the team at Harvest.”
Harvest Health & Recreation Inc has been since 2011 a vertically integrated cannabis company and multi-state operator in the U.S. Since then, Harvest expanded its retail and wholesale operations throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries.
“This transaction allows Harvest to invest in one of the most iconic brands in the industry,” said Steve White, Harvest’s Chief Executive Officer. “As one of the pioneers of the regulated cannabis ecosystem, we have always admired the work of High Times and are excited to watch the High Times brand flourish, as they poise themselves to enter the cannabis distribution and retail spaces.”
For more information on High Times visit http://www.hightimes.com.