Multistate marijuana operator Harvest Health & Recreation said it has completed the sale of its Arkansas medical marijuana operations for $25 million, a move to allow the company to focus on markets such as Arizona.
Arizona-based Harvest Health 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.”
Harvest is the leading medical cannabis operator in Arizona, with 15 dispensaries. The company recently acquired three more medical cannabis licenses in the state.
Arizona voters earlier this month legalized a recreational marijuana market that gives priority status to existing MMJ operators. Adult-use sales could begin by April 2021.
Harvest also has marijuana operations in California, Florida, Maryland, North Dakota and Pennsylvania.
The company reiterated financial guidance that total revenues will exceed $225 million for 2020.