Harvest Files Suit Against Falcon International, Inc.
PHOENIX, Jan. 7, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced that yesterday Harvest filed suit against Falcon International, Inc. (“Falcon”) requesting termination and rescission of the Merger Agreement (“Transaction”) and return of money Harvest paid to Falcon under the Merger Agreement. As detailed in the Complaint, filed in U.S. Federal Court, District of Arizona, Harvest alleges that Falcon has failed to meet its legal obligations in multiple ways, including the failure to provide auditable financial records, which precludes Harvest from moving forward with the Transaction.
While Harvest remains committed to the long-term potential of legal cannabis sales in California, current market conditions make it difficult to operate profitably there today. If the Transaction does not close for any reason, including those enumerated in the Complaint, the company plans to remove the contribution attributable to Falcon from its 2020 pro forma guidance. Harvest expects overall 2020 pro forma profitability would improve without the revenue contribution from Falcon.
About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have one of the largest footprints in the U.S., with rights to operate more than 210 facilities, of which approximately 130 are retail locations, and more than 1,700 employees across 18 states and territories. Since 2011, the company has been committed to expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest’s mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world. We hope you’ll join us on our journey: https://harvesthoc.com