Harvest Health & Recreation (CSE: HARV) is starting off the new year with a strengthened position in Nevada. The firm announced this morning that it is in the process of acquiring the assets of Greenmart of Nevada from that of Mjardin Group (CSE: MJAR). The all-cash transaction is valued at US$35 million.
The purchase will see the cultivation license and all related properties be sold to Harvest Health, which includes a facility with an expected annual production capacity of approximately 5,700 kilograms of cannabis by the third quarter of 2020.
Mjardin originally announced the acquisition of the Greenmart of Nevada assets in September 2018, at which time it paid approximately $22 million in a mix of cash and stock. The sale represents a return of approximately 59% on the assets in just over a year. At the time of purchase, Mjardin attributed just under $820,000 of the value of the transaction to assets, while the remainder was allocated to intangible assets and goodwill.
The transaction between Harvest and Mjardin saw Harvest Health advance US$30 million in cash on December 31 for the purchase. The remaining $5 million owed will be transferred to Mjardin upon final license transfer by the state of Nevada, for which a timeline was not provided.
Harvest Health & Recreation last traded at $4.15 on the CSE.
Information for this briefing was found via Sedar, Mjardin Group and Harvest Health and Recreation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
