Arizona-based Fibonacci Brands is buying the cannabis company Darwin Brands from Harvest Health and Recreation (OTC:HRVSF) for an undisclosed amount. Darwin is part of the Arizona Natural Selections company and its products include Caramel Hard Candies, Seriously Good Gummies and award-winning vapes.
In February 2020, Harvest acquired AZ Natural Selections in a deal valued at approximately $30 million, the issuance of a $6.6 million promissory note and it assumed $3.8 million in debt at closing and paid off another $2.9 million at closing. The acquisition provided Harvest with two operational cultivation facilities: a 55,000 sq. ft. indoor cultivation and production facility in Phoenix and a 322-acre site of which 25 acres are zoned for cannabis with 70,000 square feet of greenhouse in Willcox.
“We are thrilled with the opportunity to execute the vision of Darwin: to reintroduce humanity to cannabis, with integrity, so everyone can ‘Enjoy with Confidence,’” says Fibonacci Brands founder James George. “We thank everyone who has supported Darwin over the years, and we are excited to evolve our products to make Darwin even more accessible to the cannabis community.”
Darwin has won Best Vape at the Errl Cup and Best CBD Edible at the 710 Cup. Its brand icon, named Darwin is a lifelike lion dressed in a vintage suit. The company said that production and distribution will soon recommence in Arizona. Should voters enact adult-use consumption through Proposition 207 in November, the company said that Darwin is primed, given its proud roots in the state, brand appeal, quality products, and its “Origin Series,” which ensures new consumers avoid an overwhelming first-time cannabis experience. Deriving its name from a mathematical principle that underlies the structure and beauty of nature, Fibonacci Brands’ vision is to craft an international house of brands that delivers the myriad benefits of cannabis.
“We have a big vision: to provide every consumer that comes into contact with cannabis their best possible experience through products they trust and brands they love, no matter the occasion,” says George. “Our desire to fulfill cannabis consumers’ needs fires our purpose.” The company’s team says it includes veterans of the cannabis and marketing industries who have launched products in global markets, built global brands but does not name these veterans.
Harvest Health Arizona Dominance
Harvest Health is based in Arizona and is one of its largest operators. As of June, the company had 14 retail locations in the state, plus an indoor and outdoor growing facility along with a processing lab. The company’s website currently lists 15 retail locations. When Harvest Health acquired AZ Natural Selections, it was seen as a move to buy up its competition. Harvest and Curaleaf now control one-sixth of the state’s 131 dispensaries and nine MSOs have captured approximately 30% of the market share in the state.
Harvest has been on a dizzying pace for acquisitions and divestments. Earlier this year, the company made fast work of its acquisition of $85 million acquisition of Interurban Capital Group, which it then sold to another party within two months. However, Harvest Health is tied up in a lawsuit with the original owner of ICG.