Harvest Health and Recreation, a multi-state marijuana operator, has announced that it has completed the sale of its Arkansas medical marijuana operations for $25 million.
Selling these operations will allow the company to focus on markets such as Arizona where Harvest Health is based. Harvest is the leading medical cannabis operator in Arizona, with 15 dispensaries. The company recently acquired three more medical cannabis licenses in the state.
The company said it netted $12.9 million in cash from the sale of Natural State Wellness, a vertical operation. The assets included a dispensary in Little Rock that opened in February 2020.
“We are pleased to have completed this divestiture as part of our strategic plan to streamline our business and focus on core markets,” Harvest Chief Executive Officer Steve White said in a news release.
“The additional cash on our balance sheet adds flexibility at a time when we are pursuing growth opportunities such as recreational sales in Arizona.”
It was earlier this month that voters in Arizona voted to legalize marijuana recreationally. Adult-use sales could begin by April 2021.
Harvest additionally has marijuana operations in California, Florida, Maryland, North Dakota and Pennsylvania.
According to the press release from the company, Harvest Health reiterated financial guidance that total revenues will exceed $225 million for 2020.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.