Harvest Health stock is showing positive movement in early trading on Tuesday after Harvest Health & Recreation Inc (CSE:HARV) (OTCQX:HRVSF) announced that it has entered into a term sheet for a secured term loan of up to $225 USD million.
Although the marijuana industry is going through a period of correction in the stock market after enjoying many months of seemingly unstoppable growth, the better-known companies in the sector have not stopped working on deals. Harvest Health & Recreation is one of the better known vertically integrated companies in the cannabis space and in a new development, the company has managed to secure a major investment.
According to the announcement, the company has managed to secure an asset-backed loan to the tune of $225 million from Torian Capital Partners. The total loan will be dispersed to Harvest Health & Recreation in three stages, each of those being equal to $75 million. It is interesting to note that Torian is primarily involved in investing in cannabis companies globally, and this investment is a high profile endorsement for Harvest Health’s business.
Harvest Health stock is up about 6.65% in early trading and now selling at $5.54 on the OTC market. On the CSE, HARV stock is up 6.15% at $7.24.
The loans are going to be secured against the company’s cannabis licenses as well as its current and future assets. The funds are going to be used by Harvest Health & Recreation to expand its operations further.
However, the company has been doing significant deals over recent days. Only last week, Harvest Health managed to complete a major acquisition when it took over the operations of Urban Greenhouse in Arizona. While the deal in itself is significant, it is also important to point out that this particular deal gives the company a larger footprint in the lucrative Arizona market.
The Executive Chairman of the company Jason Vedadi spoke about the deal and stated, “As we grow to be the most valuable cannabis company, it is imperative that we continue efforts in key cannabis markets including our home state of Arizona to bring the community greater economic development and provide consumers easier access to high-quality retail experiences and products.” While the industry is going through a churn, Harvest Health & Recreation is making highly intelligent moves to position itself as a serious player.
Harvest Health stock has fallen 45% from its recent peak price of $10.20 on the OTC market.
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