Harvest Health & Recreation, Inc. (OTC: HTHHF), a large vertically integrated cannabis company, jumped into the Florida medical marijuana market with its $65 million purchase of San Felasco Nurseries, Inc. The deal expands Harvest’s market reach, giving it more than 40 medical marijuana licenses in 10 states.

San Felasco’s license allows it to produce and dispense medical marijuana products and operate as a Medical Marijuana Treatment Center. Each center can operate up to 25 dispensaries.

The price is comprised of $34 million in cash, $29.65 million in multiple voting stock, valued at $390 per share, and $1.96 million in assumption of debt.

Harvest’s move follows MedMen Enterprises Inc.’s (OTC: MMNFF) $53 million purchase of a Florida nursery in June 2018. Treadwell Simpson Partnership (operating as Remeny Wellness) sold MedMen a five-acre marijuana cultivation facility in Eustis, Florida and one of 13 licenses granted by Florida, including the right to open 25 medical marijuana dispensaries.

Harvest hopes to capitalize on a key growing market in the medical marijuana industry. Florida is the third most populous state with a medical marijuana market estimated to reach $1 billion in annual sales by 2020.