It appears that Harvest health (CSE: HARV) and Trulieve Cannabis (CSE: TRUL) are set to become one. Last night, Harvest Health reported that its shareholders have approved a special resolution related to the proposed transaction.
The approval grants the two firms with the ability to proceed with the previously announced merger transaction. The meeting saw a total of 552.6 million shares vote in favour of the transaction, while just 0.8 million shares voted against the proposal.
Initially pegged at a price of $2.1 billion, the transaction will see Harvest shareholders receive 0.1170 of a subordinate voting share of Trulieve for each Harvest Health share held. The price tag implied a 34% premium for Harvest shareholders based on equity pricing at the time of announcement.
The resulting issuer, as per the original announcement, is expected to produce 2020 adjusted EBITDA of $266 million, and 2021E combined EBITDA of $461 million, while creating the largest US cannabis operator on a retail and cultivation footprint basis.
Following the announcement, Trulieve Cannabis this morning filed its second quarter financial results, reporting revenues of $215.1 million along with adjusted EBITDA of $94.9 million.
An estimated timeline for closing of the transaction was not provided.
Harvest Health last traded at $4.50 on the CSE.
Information for this briefing was found via Sedar and Harvest Health. 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.
