Harvest Health & Recreation Inc. said it is in negotiations to acquire Interurban Capital Group, the owner of private medical cannabis company Have a Heart CC.

The company expects to pay about C$87.5 million of its stock to Interurban. In addition, Interurban's debt will be transferred to the Tempe, Ariz.-based company and can be converted into 205,594 multiple voting shares of Harvest stock.

Among other things, the deal is subject to the execution of definitive agreements, regulatory approvals, and the satisfaction or waiver of customary closing conditions.

Have a Heart operates 11 dispensaries in California, Washington and Iowa and has licenses for seven retail locations in California.

On Nov. 21, 2019, Harvest announced that it would acquire CannaPharmacy Inc. subsidiary Franklin Labs LLC for $26 million, replacing the original agreement to acquire CannaPharmacy.