Harvest Health Closes $94 Million with First Tranche of Debt Financing

PHOENIX – Harvest Health & Recreation Inc. (CSE: HARV) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., announced the closing of the first tranche of its previously announced senior secured notes and units Friday, December 20, 2019. The first tranche resulted in the private placement of, (a) approximately US$73 million 15% senior secured notes (the “Coupon Notes”) due 2022, and (b) approximately 21,000 units (the “Units”), with each Unit being comprised of (i) US$1,000 aggregate principal amount of 9.25% senior secured notes (together with the Coupon Notes, the “Notes”) and (ii) 109 subordinate voting share purchase warrants (the “Warrants”).

“The closing of this initial tranche serves as the foundation for our 2020 growth objectives and expansion plans,” said Harvest Executive Chairman Jason Vedadi. “We believe this financing adds capital at a reasonable cost and will support Harvest as we continue on a path toward profitability.”


The debt financing is led by Canaccord Genuity Group Inc. (“Canaccord”) and A.G.P./Alliance Global Partners and closings of future tranches are subject to customary closing conditions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons (as such terms are defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from such registration requirements.

About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have one of the largest footprints in the U.S., with rights to operate more than 210 facilities, of which approximately 130 are retail locations, and more than 1,700 employees across 18 states and territories. Since 2011, the company has been committed to expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest’s mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world.

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