Harvest Files Suit Against Falcon International, Inc.

Publisher: The Insight Partners

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., 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.