(Bloomberg) -- Hightimes Holding Corp., owner of the cannabis culture magazine, will buy 13 dispensaries from Harvest Health & Recreation Inc., making it one of the largest branded retailers of cannabis in California.
The deal, for $80 million in cash and stock, comes as Hightimes approaches a May 15 termination date for an initial public offering that it has planned for since 2018. Hightimes will rebrand Harvest’s current retail locations in California, including one on San Francisco’s Geary Street with a high-end boutique neighbor, Adam Levin, Hightimes’ executive chairman, said.
“Stoner culture today isn’t necessarily a counterculture anymore. Hightimes is mainstream; we will literally be next to a Chanel store,” Levin said in a phone interview.
Hightimes had already started moving into retail, with another purchase of a location in Los Angeles. Acquiring the Harvest locations, which all come with delivery licenses, will put it on a par with other large players in California, like MedMen and Eaze.
The magazine, founded in 1974, has long advocated for the legalization of cannabis. In 2017, it was acquired by a group of investors including Levin, and has expanded its events, merchandise and licensing deals, trying to turn pot culture into a highbrow epicurean pursuit.
Harvest Health House of Cannabis is a multistate operator with more than 210 facilities, of which around 130 are retail locations, according to a statement about the acquisition.
The companies didn’t have an adviser on the deal, which grew out of a prior advertising relationship, Levin said. Harvest will get $67.5 million of the deal in Hightimes stock and the remainder in cash. Parties aim to close no later than June 30, 2020.
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