Harvest Announces Initial Closing of Divestment of Select California Retail Assets to High Times

Harvest Health & Recreation Inc. (CSE: HARV)(OTCQX: HRVSF) is a vertically integrated cannabis company and multi-state operator in the U.S. The company announces the completion of the initial closing of the divestment of select retail assets in California to Hightimes Holding Corp. Per the terms of the most recently revised agreement, at the initial closing, Harvest and its affiliates sold a portfolio of equity and assets with respect to eight operational and planned dispensaries in California for total consideration of $61.5 million, consisting of $1.5 million in cash and $60.0 million in Series A Preferred Stock issued by Hightimes. At a second closing, which is subject to various closing conditions and contingencies including third party and regulatory approvals, Harvest and its affiliates intend to sell additional equity and assets with respect to two planned dispensaries in California for total consideration of $6 million in Series A Preferred Stock issued by Hightimes.

Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S., with the potential to more than double the number of revenue generating facilities. Harvest’s mission is to improve lives through the goodness of cannabis.

Harvest will retain four operating dispensaries located in Grover Beach, Napa, Palm Springs, and Venice and select licenses for potential retail locations in California following completion of this planned divestment.