12/23/2023 0 Comments Health harvest![]() ![]() “US cannabis generated $18 billion in legal sales in 2020 without federal banking,” Paxhia said in emailed comments. is the key cannabis market and called on policymakers to move fast on reforms.Ĭannabis is still classified as a Schedule I drug at the federal level, hampering the development of the legal sector and keeping companies mostly out of the federally insured banking sytem. Morgan Paxhia, co-founder and managing partner of cannabis investment fund Poseidon, said the deal is further evidence that the U.S. cannabis producers are now favored by Wall Street analysts, who’ve soured on Canadian companies ![]() ” But we realize Harvest is a fully-fledged operation with intrinsic value beyond just assets (it certainly navigated the early start of rec in AZ rather well).”Ĭantor is sticking with its outperform rating on Trulieve stock, but lowered its stock price target to $76 from $89 to reflect the expanded share count to 181 million.ĭon’t miss: U.S. 9 times for Trulieve), and entry to other strategic states (NJ, NY) more beneficial to the stock long term,” Zuanic wrote in a note to clients. “That said, we could argue a more piecemeal approach (asset collection) could have been less costly (the all-stock deal values Harvest at $2.1 billion, or 20 times calendar year 2022 EBITDA vs. Zuanic has been concerned that Trulieve looked more like a single-state operator than a multi-state one in the past. The exchange rate implies a price per Harvest share of $4.79, equal to a 34% premium over its closing price Friday.Ĭantor Fitzgerald analyst Pablo Zuanic said the deal will elevate Trulieve to the leading position in the cannabis market in Arizona and bring it close to that position in Pennsylvania, while adding to its dominant share in Florida, where it has a 50% market share. Under the terms of the deal, Harvest shareholders will receive 0.1170 of a subordinate voting share of Trulieve for each Harvest subordinate voting share owned. ![]() “Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult use space in Arizona,” said Trulieve CEO Kim Rivers in a statement. The new entity will have operations in 11 states with 22 cultivation and processing facilities with a total capacity of 3.1 million square feet and 126 dispensaries serving the medical and adult-use recreational cannabis markets. Harvest shares soared 15% on the news, while Trulieve was down about 3%. ![]()
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