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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.