Shares of Trulieve Cannabis (TRUL) were up in early trading Friday, after the company announced the completion of its acquisition of Harvest Health & Recreation Inc.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Trulieve is a multi-state cannabis operator that focuses on the northeast and southeast regions of the United States, while Harvest Health focuses on the West Coast, and northeast regions.
This deal creates the largest and most profitable operator of legal cannabis in the United States by several metrics. (See Trulieve Cannabis stock charts on TipRanks)
Trulieve CEO Kim Rivers said, “The closing of this Transaction marks a transformational milestone in our company’s history and positions Trulieve as the leading medical and adult-use cannabis operator in the U.S. …
“We look forward to fully integrating Harvest as we continue to execute on our hub strategy in the U.S., creating an unrivalled brand and reputation in the marketplace and value for our shareholders.”
For each share of Harvest held, investors received 0.1170 of a Trulieve subordinate voting share. In total, Trulieve issued a total of 50.8 million Trulieve shares as part of the transaction, in exchange for all of the issued and outstanding Harvest shares.
Harvest will be delisted from the Canadian Securities Exchange when markets close on October 4.
On September 30, Echelon Wealth Partners analyst Andrew Semple reiterated a Buy rating on TRUL with a C$75 price target. This implies 111.5% upside potential.
The rest of the Street is bullish on TRUL with a Strong Buy consensus rating, based on five Buys. The average Trulieve Cannabis price target of C$85.33 implies 141.3% upside potential to current levels.
Related News:
Aurora Cannabis’ Q3 Sales Fall 20%; Shares Up 3%
High Tide Named Among Canada’s Fastest-Growing Companies
High Tide Enters into 2 White Label Partnerships
