Harvest Amends Divestment Plan For California Assets In High Times Deal

Cannabis company Harvest Health & Recreation Inc. HARV HRVSF disclosed changes to the company's proposed plan to sell some 13 California-based dispensaries to High Times Corp.

Under the deal, initially announced in April, the Tempe, Arizona-headquartered company agreed to divest dispensaries to High Times for $12.5 million in cash and $67.5 million in preferred stock.

High Times, which owns High Times Magazine, said it will transform stores in its image.

Pursuant to the amended terms, released Friday, Harvest Health & Recreation decided to sell equities and assets worth $67.5 million in relation to ten operational and planned dispensaries in California.

The payment will include up to $1.5 million in cash, $4.5 million as a one-year promissory note carrying 10% interest, and $61.5 million in Series A Preferred Stock issued by High Times.

Harvest said it will hold on to four operating dispensaries, including stores in Grover Beach, Napa, Palm Springs, and Venice.

Meanwhile, High Times has partnered with Red White & Bloom Brands Inc. RWB TDRYD, according to the last week’s announcement.

The two parties signed a licensing rights deal for the branding of High Times medical and recreational dispensaries.