Prolonged obstacles in meeting requirements for state and local regulatory authorities needed to transfer ownership and operational licenses, adverse capital market conditions, a challenging environment for asset sales, all contributed significantly to the decision not to move forward with the pending acquisition. No breakup fees or other considerations are owed by either party as a result of the termination of the BCA.
Given the persistent challenges in consummating this deal and current market conditions both companies felt it was prudent to move forward separately at this time.
We have tremendous respect for the entire team and operations at Verano Holdings. We wish them well and look forward to possibly working together in the future said Steve White, Harvest CEO
Mr. White continued, “We remain focused on continued development of assets in our core markets including Arizona, Florida, Maryland, and Pennsylvania. Recent capital raising efforts have afforded the company sufficient resources to continue to invest in strategic projects while moving toward profitability.”
This decision was not taken lightly. While both organizations worked very hard to consummate this transaction, significant delays in closing started with the Hart-Scott-Rodino antitrust review process. Those were followed by state and local regulatory complexities in multiple states.
“Now with the COVID-19 pandemic often being dealt with in the very agencies that must approve the transaction, it has become clear that this combination would not be completed within the established timeframe. We look forward to continuing to grow our operations as one of the largest privately held multi-state operators in the U.S,” said George Archos, Verano Holdings CEO
Harvest will provide an in-depth corporate update on capital, M&A, strategy and outlook during its fourth quarter earnings call on Tuesday, April 7th at 5 PM EDT.