Harvest Health & Recreation (OTC:HRVSF) is venturing no further than its own backyard for its latest acquisition. The vertically integrated marijuana company, based in Tempe, Arizona, announced Wednesday it has acquired privately held Arizona Natural Selections.
The transaction was effected in Harvest Health stock. The company did not specify the amount, but did describe it as "non-material."
Arizona Natural Selections holds four licenses allowing it to sell medical cannabis in the state. Three of those permits are in active use at the company's dispensaries, which are clustered around the capital and largest city, Phoenix. A fourth dispensary is planned, but has not yet opened.
Additionally, Harvest Health is now the owner of Arizona Natural Selections' two growth and production facilities. One of these is an indoor cultivation and production facility in Phoenix spanning 55,000 square feet, and the other is a site covering 322 acres in Wilcox, a town in the southeastern corner of the state. The latter has 25 acres zoned for marijuana cultivation, and contains 70,000 square feet of greenhouse space.
Arizona has had a medical marijuana program in place for some time, following its legalization in a statewide vote in 2010. Unlike its neighbors California and Nevada, however, it does not yet permit the recreational sale and use of cannabis products, and as such, the potential for marijuana companies is limited there.
"We will look to further the existing reputation and operational excellence Arizona Natural Selections has established across the state and are eager to welcome new members into the Harvest family," Harvest Health wrote in the press release trumpeting the acquisition.
Harvest Health stock was up marginally in mid-afternoon trading Wednesday.