Trulieve becomes the largest US cannabis company

Trulieve has just acquired Harvest Health & Recreation, making it officially the largest cannabis company in the country.

Trulieve completed the purchase today for $ 2.2 billion. The company is based in Tallahassee and was founded as a medical cannabis company, the largest legal cannabis company to date.

“Trulieve is primarily a vertically integrated seed-to-sale company in the United States and the first and largest fully licensed medical cannabis company in the state of Florida,” said a press release. “Trulieve cultivates and manufactures all of its products in-house and distributes these products to Trulieve branded pharmacies throughout the state of Florida and directly to patients via home delivery. Trulieve is also a licensed operator in California, Massachusetts, Connecticut, Pennsylvania, and West Virginia. “

Separately, Trulieve and Harvest Health & Recreation reported combined revenues of $ 317.6 million for the second quarter of the year, no small change. Truileve received a large cash acquisition back in June with $ 350 debt financing, and Harvest recently received $ 55 million from a license sale in Florida. Trulieve raised $ 289 million in cash and cash alternatives and Harvest raised $ 71 million in June.

Trulieve had revenues of $ 215 million on revenues of nearly $ 41 million for the second quarter. Harvest had sales of more than $ 102 million for a combined total of $ 318 million.

To date, this is the highest public reporting cannabis company in the country, with Trulieve at the top.

“Today’s announcement marks the largest and most exciting acquisition in our industry to date, creating the most profitable, multi-state public operator. It is important that our companies share similar customer values ​​and focus on penetrating deep into core markets. This combination gives us the opportunity to leverage our respective strong foundations and advance ourselves with an unprecedented platform for future growth, ”said Kim Rivers, Trulieve Chief Executive Officer.

This acquisition enables Trulieve to continue its expansion in growing markets across the country. “Harvest gives us an immediate and significant presence in new and established markets, and accelerates our entry into adult use in Arizona. Trulieve and Harvest are leaders in our markets, recognized for our innovation, brands and operational expertise with real depth and size in our businesses. We look forward to providing world-class service to patients and customers on a wider national scale as we create an iconic US cannabis brand. “

“We are very excited to join Trulieve, a company that has achieved unprecedented success and size in its home state of Florida,” said Steve White, Harvest’s chief executive officer. “As one of the oldest operators in several states, we believe that our track record in identifying and developing attractive market opportunities, combined with our recent successful launch of adult sales in Arizona, will add tremendous value to the combined organization as it continues to expand and grow will. “in the years to come.”

In total, Trulieve now has a total of 149 pharmacies and three regional centers, and the company operates in 11 states. This also makes Florida a leading market for cannabis, despite the state’s slow start in the recreational space. Arizona and Pennsylvania are other notable leading markets.

“This combination brings together two companies of depth and size in key markets and provides a platform for growth for years to come,” said Steve White, CEO of Harvest. “Trulieve’s customer-centric values ​​go well with Harvest’s commitment to improving lives through the goodness of cannabis.”

With this acquisition, Trulieve now has access to Harvest Brands. Under the Harvest umbrella is Alchemy and Roll One, both of which are popular in the local market.

As the sale wore off, those with Harvest stock received 0.117 in subordinated voting stock in the company. Trulieve issued 50,874,175 new shares in exchange for all of Harvest’s shares. Harvest is based in Canada, so the sale was in compliance with the Business Corporations Act of British Columbia.