Harvest Health & Recreation Inc. Announces Upsized Bought Deal Financing of C$40,000,000

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PHOENIX, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Harvest Health & Recreation Inc.   (“Harvest” or the “Company”)   (CSE: HARV), a vertically integrated cannabis company and multi-state operator in the U.S., is pleased to announce that is has entered into an amended agreement with Eight Capital, pursuant to which Eight Capital, together with Canaccord Genuity Corp., as co-lead underwriters and joint bookrunners, together with a syndicate of underwriters (collectively, the “Underwriters”), will now purchase on a “bought deal” basis 17,699,200 units of the Company (“the Units”) at a price of $2.26 per Unit (the “Offering Price) for aggregate gross proceeds to Harvest of $40,000,192 (the “Offering”). (All figures are in Canadian dollars unless otherwise stated.)  

Each Unit shall consist of one subordinate voting share of the Company (each, a “Unit Share”) and one-half of one subordinate voting share purchase warrant (each whole share purchase warrant, a “Warrant”). Each Warrant shall be exercisable into one subordinate voting share of the Company at an exercise price of $3.05 per share for a period of 30 months from the Closing Date (as defined below) (the “Warrant Shares” or together with the Unit Shares, “Shares”). If the daily volume weighted average trading price of the subordinate voting shares of the Company on the Canadian Securities Exchange (the “CSE”) for any 10 consecutive days equals or exceeds $4.97, the Company may, upon providing written notice to the holders of the Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.

The Company has granted the Underwriters an option, exercisable, in whole or in part, at any time not later than the 30^th day following the closing of the Offering, to purchase up to an additional 15% of the Offering at the Offering Price for market stabilization purposes and to cover over-allotments, if any (the “Over-Allotment Option”). If the Over-Allotment Option is exercised in full, the total gross proceeds of the Offering will be approximately $46,000,000.