Harvest Health & Recreation (CSE: HARV) has disposed of assets in Arkansas. The company announced this morning that it has sold both its dispensary and cultivation assets within the state, for gross proceeds of $25.0 million.
The assets sold consist of Natural State Wellness Dispensary, as well as Natural State Wellness Enterprises which were sold last Friday. After the repayment of $1.9 million in debts associated with the assets, the company has indicated that net proceeds from its portion of ownership amount to $12.9 million, with the company maintaining ownership over the real estate assets for both operations.
The dispensary, operating under the banner of Natural State, was opened just this past February, with the company indicating it was to offer close to 125 different products at the location. However, in May the company lost a trademark dispute for the use of the Harvest name within the state against a small mom-and-pop operation, limiting the firms branding ability across the state.
Guidance has been maintained at $225 million in revenue for fiscal 2020 following the sale of the assets.
Harvest Health last traded at $2.33 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.
