Hightimes Holding Corp, the owner of the High Times cannabis brand, has agreed to acquire thirteen California dispensaries from Harvest Health & Recreation Inc. for $80 million.

HIghtimes said it has reached a deal to acquire certain equity and assets with respect to thirteen planned and operational California dispensaries from Harvest Health.

The companies intend to close the transaction by June 30, 2020. Consummation of the transaction is subject to certain closing conditions, including the receipt of certain regulatory third-party consents.

Hightimes noted that the successful closing of the mostly stock-based transaction will enable it to enter the retail sector and become one of the largest branded cannabis retailers in California overnight. The company plans to fully convert the cannabis retail stores in to High Times destinations.

Separately, Tempe, Arizona-based Harvest Health said it is selling the portfolio of California dispensaries for a total consideration that includes up to $5 million in cash, $7.5 million as a one-year promissory note with 10 percent interest, and $67.5 million in Series A preferred stock issued by High Times.

Harvest Health will retain select retail dispensaries and licenses for potential retail locations in California, following completion of this transaction.

According to Harvest Health, the sale will enable it to focus on optimizing operations and expanding assets in core markets such as Arizona, Florida, Maryland, and Pennsylvania, while retaining a smaller retail presence in California.

“This transaction allows Harvest to invest in one of the most iconic brands in the industry. As one of the pioneers of the regulated cannabis ecosystem, we have always admired the work of High Times and are excited to watch the High Times brand flourish, as they poise themselves to enter the cannabis distribution and retail spaces,” said Steve White, Harvest Health’s Chief Executive Officer.

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