Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) receives an increase in its shares after the company announced it has closed a sale-leaseback transaction with Innovative Industrial Properties, Inc. (NYSE: IIPR) in which it will sell around 35 million shares U.S. dollar. Harvest sold an industrial property with a total area of around 292,000 square meters $ 23.8 million. The company also noted Friday that it had begun adult sales in Arizona. The stock rose over 8% on Friday and recently sold at $ 3.40.
With the sale of the property, Harvest signed a triple net lease with IIP. Harvest plans to continue operating the property as a licensed cultivation and processing facility and anticipates a recovery of up to approximately $ 10.8 million in tenants improvements from IIP.
“We are pleased to secure real estate financing to support our expansion activities Alachua Cultivation and processing facility, ”said the Chief Executive Officer Steve White. ” Florida is one of our core markets with a rapidly growing medical patient population. We look forward to opening new retail locations in Florida for additional capacity Alachua comes online. "
Harvest also announced on Friday that adult sales in Arizona had started. According to AZCentral, the Joint Legislative Budget Committee said the 16% excise tax plus regular sales taxes on recreational marijuana products would generate $ 250 million in revenue. Another study by Smart and Safe Arizona puts the figure at $ 300 million a year.
“We're excited to see the first sale and recreational customers access to regulated and legal cannabis products on this historic day Arizona"Said the chief executive officer Steve White. “The first sale started just 80 days after the election and 54 days after the election was confirmed. This is by far the fastest start in history. The Department of Health Services has tremendously accelerated this process, helping operators like Harvest make recreational sales to Arizonans 21 and over. We look forward to serving both medical patients and recreational customers in our retail stores across the state. "
Harvest currently operates 15 pharmacies in Avondale, Casa Grande, Chandler, poplar, Glendale, Guadalupe, Lake Havasu, Mesa, Peoria, Phoenix, Scottsdale, Tempe, and Tucson supported by attachments in Camp Verde, El Mirage, Phoenix, and Willcox and processing plants in Flagstaff and Phoenix.