Harvest Health & Recreation (OTC: HRVSF) announced on April 28 that it would be divesting some of its retail assets in Calfornia. The multistate cannabis operator will be selling 13 dispensaries to Hightimes Holding Corp. The deal didn't look all that enticing for Harvest, with the company receiving $5 million in cash, a $7.5 million promissory note, and $67.5 million worth of preferred shares.
It's a bit of a puzzling move. Let's take a closer look at this deal -- and Harvest -- to see whether this was a good decision and if investors should ditch the stock.
In its press release announcing the news, Harvest CEO Steve White stated: