Harvest Health & Recreation Inc (Sub Voting) HRVSF

Steve White, CEO, Interview

[olive15]

Good appearance by White on Midas Letter. Imo, share price was massacred during past two months for no reason other than industry wide stampede for the exit. This is a well run company, fiscally sound, strong growth (revenue forecasted +1B in 2020) with more catalysts to come. No reason shares should not pop back to $7 range before xmas. https://www.youtube.com/watch?v=RJVAzkKqMoM

[JesseB]

That revenue projection only works if they close on ALL three pending acquisitions. Given the share based deals were at prices much higher (verano was 8.50cdn) they may not close... I believe this is the reason the market cap of the co.0any is relatively low.

[olive15]

Fair enough. Risk of not closing remains. But the risk is not with the companies being acquired. The remaining risk is with regulatory authorities,, i.e., they need to sign off on the agreements. As for Verano, according to press releases, purchase price is 850m in an all stock deal. The change in share value isn't relevant to closing the transaction. The transaction has been approved by

[Themanfromcomo]

You're wrong on the structure of the deal. Yes, at the time the deal was worth 850 million. However, they're getting 129 million shares at whatever value they are at closing.

[olive15]

Agreed. Based on an email reply received from Christine Hersey, IR director, your interpretation is correct. Christine stated: "The amount of shares issued in the Verano transaction is fixed at ~129 mil subordinate voting share equivalent.  So based on our current share price the purchase price would be lower."    

[Themanfromcomo]

@Olive15... Thanks for posting so all investors can see it. Gl

[Themanfromcomo]

Verano will close or they will have to pay Harv millions of dollars for money they put into Veranos infrastructure. Verano doesn't have the money to pay Harv. Done deal.