Multistate cannabis operator Harvest Health & Recreation (OTC:HRVSF) has its sights set on being an industry leader in the U.S. and it's making strides to do just that. This week, the company announced that it is in talks to acquire Interurban Capital Group, a management services company that owns cannabis company Have a Heart.

The potential all-stock transaction is worth approximately $87.5 million. Have a Heart has 11 dispensaries in three states – Washington, California, and Iowa. It also has retail licenses in California which could expand Harvest Health's presence there. 

Currently, Harvest Health has retail locations in Arizona, California, Florida, Maryland, North Dakota and Pennsylvania. It is also planning to expand into Michigan and Arkansas later this year. It's already one of the largest multistate operators in the country and it could have approximately 130 retail locations across the country if all its planned acquisitions go through. 

Cannabis greenhouse.

Image source: Getty Images.

Just a disclosure, for now

Although the negotiations between Harvest Health and Interurban Capital are progressing and are at a stage where Harvest Health needs to make a disclosure to its investors, there's still due diligence that needs to take place and the transaction is by no means a done deal.

Like many other marijuana stocks, Harvest Health is looking for ways to expand its operations and strengthen its financials. Its sales over the past 12 months have totaled $66.2 million but like many cannabis companies, it's struggled with profitability, accumulating losses of $87.5 million during that time. 

News of the potential acquisition has not sat well with investors with the stock down more than 10% since the end of last week. Many cannabis investors have grown wary of acquisitions that dilute their positions.