Harvest Health & Recreation Inc. completed of the initial closing of the divestment of select retail assets in California to Hightimes Holding Corp. (“Hightimes”), previously announced on April 28, 2020 and June 12, 2020. Per the terms of the most recently revised agreement, at the initial closing, Harvest and its affiliates sold a portfolio of equity and assets with respect to eight operational and planned dispensaries in California for total consideration of $61.5 million, consisting of $1.5 million in cash and $60.0 million in Series A Preferred Stock issued by Hightimes. At a second closing, which is subject to various closing conditions and contingencies including third party and regulatory approvals, Harvest and its affiliates intend to sell additional equity and assets with respect to two planned dispensaries in California for total consideration of $6 million in Series A Preferred Stock issued by Hightimes.
Harvest will retain four operating dispensaries located in Grover Beach, Napa, Palm Springs, and Venice and select licenses for potential retail locations in California following completion of this planned divestment. As such, the previously announced full year 2020 revenue target remains unchanged.