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Hot Cannabis Stock Pick for 2020, Harvest Health & Recreation Inc., Launches $100 Million Equity Offering

Why is Harvest Health & Recreation a hot cannabis stock pick for 2020?

Harvest Health Cannabis Stock Hemp StockHarvest Health & Recreation Inc. (OTC: HRVSF) has more than 140 cannabis licenses, a plan to expand to more than 70 dispensaries, 13 cultivation facilities, and 13 manufacturing facilities. Now, it recently announced the launch of a $100 million equity offering at a discounted price as the company founder resigns. We recommended Harvest Health & Recreation earlier this year as a top cannabis stock pick for 2020 because of its strong history of acquisitions, strong finances, strong revenue guidance, and now it has launched a $100 million equity offering.  But Why is Harvest Health & Recreation a hot cannabis stock pick for 2020?

The company has a very aggressive strategy of expansion through acquisitions and utilized that strategy to acquire Verano Holdings. This acquisition of Verano led the company to a total facility count of 200 in 16 states and 132 retail cannabis dispensaries. The acquisition of Verano Holdings was an all-stock agreement for $850 million and it made the company the largest multi-state operator in the United States. But is this one of the best cannabis stock picks for 2020?

On March 11th, the company announced that it has closed an initial tranche to a non-brokered private placement offering of several voting shares and the execution of a merger agreement with the previously announced acquisition of Interurban Capital Group, Inc.. The company also announced that the company’s founder, Jason Vedadi, has resigned from his role as Executive Chairman of the Board of Directors.

The company’s launch of the $100 million equity offering is at a discount and is offered on a non-brokered private placement basis to a select group of investors. Up to $100 million of the Harvest Health’s voting shares could be sold at a price of $141 per share. In tandem with the offering, the company received proceeds from investor groups of an aggregated principal amount of about $56 million that resulted in the issuance of 397,162.42 voting shares. The offering is scheduled to close on or before March 31st of this year and the proceeds will be used to fund specific operations and parts within the company. Harvest Health & Recreation will use the funds received from the offering for capital expenditures, pending acquisitions, and general corporate purposes.

As for the announcement on the company’s pending merger with Interurban Capital Group, Inc., Harvest Health & Recreation entered into a definitive agreement to acquire the company for an estimated $85.8 million through the issuance of 309,452 voting shares, assumption of an approximate $19.1 million in debt that is convertible into 205,594 voting shares, and the payment of an additional $9.3 million after a call option is exercised in order to acquire the controlling interests of five cannabis dispensaries that are located in Washington. Harvest Health & Recreation also has the option to pay $12.4 million to acquire all of the assets of the dispensaries.

Hot Cannabis Stock Pick for 2020, Harvest Health & Recreation Inc., Launches $100 Million Equity Offering

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