“The completion of our purchase of assets from True Harvest expands Greenrose’s footprint in the Southwest and demonstrates the continued execution of our growth strategy,” said Greenrose CEO Mickey Harley.
Greenrose Holding Company (OTCQX: GNRS) Inc, which plans to become a multi-state cultivator and producer of cannabis products, revealed that it has completed its previously announced acquisition of the assets of Arizona-based True Harvest LLC. .
Under the terms of the agreement, Greenrose paid consideration of $57.6 million at closing, consisting of $12.5 million in cash, $23 million in the form of a convertible note, 4, $6 million in assumed debt and $17.5 million in company stock. .
“Provided that True Harvest achieves a certain price per pound of cannabis flower relative to total flower production within 36 months of closing the transaction, Greenrose will pay additional consideration of up to $35 million under the form of a price supplement, payable in shares,” said Greenrose.
READ: Greenrose acquisition renamed The Greenrose Holding Company after closing of business combination with Theraplant
“The completion of our purchase of True Harvest assets expands Greenrose’s footprint in the Southwest and demonstrates the continued execution of our growth strategy,” Greenrose CEO Mickey Harley said in a statement.
“We look forward to working with the talented grow team at True Harvest to continue to grow our business around high quality flowers. With our strong culture footprint in Arizona and Connecticut, we believe our platform is well positioned to capture the growth opportunities presented by these new and emerging recreational markets,” he added.
Harley said the company is “proud” of the progress it has made and will deliver on its strategic goals in 2022.
Amityville, New York-based Greenrose completed its business combination with the acquisition of Connecticut-based Theraplant LLC on November 26, 2021. The company has revised its 2022 outlook for True Harvest and Theraplant to reflect an expected start in the fourth quarter of 2022 for recreational cannabis sales. in Connecticut.
“Combined, True Harvest and Theraplant are expected to generate between $120 million and $140 million in full-year 2022 revenue, 2022 net income of between $8 million and $14 million, and 2022 adjusted earnings before interest, taxes, depreciation and amortization ( EBITDA) between $75 million and $85 million,” the company said.
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