- Prime Harvest recently revealed that the company’s Reg A+ equity offering has been greenlighted by the SEC
- The primary share offering will see the company market up to 10 million shares to investors at a price of $4.20 each, with estimated gross proceeds of $42 million
- The company has said that net proceeds will be destined towards the acquisition of licensed assets, continued expansion of their delivery network and general corporate purposes
Prime Harvest, a technology-focused, full-service cannabis company based in San Diego, recently announced the qualification of its equity offering under the SEC’s Regulation A+. The offering, which has officially been qualified by the U.S. Security Exchange Commission (“SEC”) as of Jan. 25, 2023, will provide the company with authorization to commence marketing its upcoming equity placement to both, accredited and non-accredited investors via its online platform, www.Weed4ThePeople.com (https://cnw.fm/KcuMh).
Prime Harvest plans to raise gross proceeds of up to $42 million through its primary share issuance, a corporate action which will see the company offer up to 10,000,000 shares of common stock for sale at an initial public offer price of $4.20 per share. The company has announced that gross proceeds from the equity raising will be destined towards the acquisition of licensed assets, the development of Prime Harvest’s direct-to-consumer application, expansion of the company’s state-wide delivery capabilities, as well as general corporate purposes.
Dating back to the company’s change in corporate strategy in 2019, a move which saw Prime Harvest transition from its origins as one of San Diego County’s founding brick and mortar cannabis outlets towards a tech-focused retailer through its Jaxx Cannabis flagship retail and delivery platform, the company has seen its prospects rise to new highs. Boasting over 60+ brand partners, Prime Harvest has seen its revenues swell by upwards of 784% between 2019-2021, a function of the company seeing its unique customer numbers rise by over 212% during that interim, with the average consumer expending $75 on average per purchase.
More recently, Prime Harvest and its retail brand, Jaxx Cannabis, have taken the sale of cannabis to new technological heights through the creation and development of the Jaxx Delivery Mobile App. A reliable, sophisticated and easy to use platform, the Jaxx Delivery App aims to expand the company’s footprint to encompass much of California’s legal market – a bold and arduous move given the rising demand from previously unexploited submarkets within the Golden State.
Prime Harvest’s actions come at a pivotal time for the US cannabis market, with over 33 US states as well as the District of Columbia currently sanctioning the legal use of some form of cannabis. Consequently, the legal cannabis industry has rapidly become one of the fastest growing sectors of the US economy, with a recent study noting that the industry accounted for 250,000 jobs as of 2020 and would likely grow to a market size of $24.1 billion by 2025 (from $6.6 billion in 2016). One study in the meantime has opined that California alone could account for a remarkable $25 billion of a projected $50 billion nationwide market by 2026.
Despite predictions on market growth being wildly divergent on the back of varying levels of optimism surrounding the industry’s development prospects, Prime Harvest has sought to pre-emptively ensure that they will be able to capitalize on the sector’s ongoing evolution through its upcoming capital raising exercise as well as its market leading retail offer via Jaxx Cannabis.
For more information, visit the company’s website at www.PrimeHarvestInc.com.
NOTE TO INVESTORS: The latest news and updates relating to Prime Harvest are available in the company’s newsroom at https://cnw.fm/PRIME
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