Harvest Health and Recreation (CSE: HARV) announced this morning that its $225 million million loan from Torian Capital Partners has fallen through, with both firms walking from the table. The financing, which was originally announced in late July, was previously speculated to have fallen through by The Deep Dive.
In place of the massive funding fallout with Torian, Harvest has secured a total of C$62.5 million in loans from undisclosed third parties. No terms were provided for the transactions, aside from the loans being for C$35.0 million and C$27.5 million.
Concurrent with the announcement of new financing, Harvest Health identified that it has substantially changed the terms of acquisition for that of CannaPharmacy, Inc. The original acquisition, which was to see Harvest acquire CannaPharmacy’s operations in the states of New Jersey, Delaware, Maryland, Pennsylvania, along with a minority interest in a Columbian operation, has been significantly paired down. Harvest will now only acquire certain CannaPharmacy assets within the state of Pennsylvania, where Harvest has seen troubles with its current operations.
The new transaction will see Harvest acquire the Pennsylvania-based Franklin Labs, LLC for a total of $26.0 million, of which $15.0 million will be paid in cash while the remainder takes the form of a promissory note. Upon due diligence, Harvest may elect to provide consideration in the form of certain undisclosed cannabis assets and a reduced cash payment of only $8.0 million. The previous agreement was to have total consideration of $88.0 million in the form of cash and stock.
Franklin Labs currently owns a 46,000 square foot cultivation, manufacturing, and distribution facility within Reading, PA.
Harvest Health closed yesterday’s session at $3.39 on the CSE.
Information for this briefing was found via Sedar 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.
