Harvest Health & Recreation Inc. Announces Settlement With Falcon International Corp.

Rhea-AI Summary

Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) announced the settlement of its dispute with Falcon International Corp., resulting in the dismissal of all related litigation and arbitration. Harvest now owns 10% of Falcon, with a 10-year warrant for two common shares at an exercise price of US$1.91. The settlement allows Harvest to refocus on its core operations, following a previous merger agreement terminated in January 2020. The company continues its mission to expand its cannabis business across the U.S.

Positive

• Settlement allows Harvest to refocus on core operations.
• Acquisition of 10% stake in Falcon provides future growth potential.

Negative

• Previous merger agreement with Falcon was terminated, indicating potential operational challenges.
• Uncertainty remains regarding the overall cannabis regulatory environment.

PHOENIX, March 15, 2021 /PRNewswire/ -- Harvest Health & Recreation Inc.  ("Harvest") (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today announced the settlement of its dispute with Falcon International Corp. ("Falcon") and its affiliates on mutually agreeable terms.

On February 14, 2019, Harvest announced a definitive agreement to acquire Falcon.  In January 2020, the merger agreement was terminated and the parties entered arbitration to resolve disputes related to the merger agreement.  The parties have reached a mutually agreeable resolution of their disputes and have agreed to a final dismissal of all litigation and arbitration between them arising out of the 2019 merger agreement.  In accordance with the settlement terms, Harvest now owns 10% of Falcon.  Each share comes with a 10-year warrant entitling Harvest to two (2) common shares of Falcon at an exercise price of US$1.91, subject to customary anti-dilution adjustments.

"We are pleased to settle this dispute and continue to focus on our core business operations," said Chief Executive Officer Steve White.

About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest's mission is to improve lives through the goodness of cannabis. We hope you'll join us on our journey: https://harvesthoc.com 

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Forward-looking Statements
This press release may contain "forward-looking statements" regarding Harvest's business strategies or prospects, which may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions. Such statements include, but are not limited to, the following: our growth potential in our core  cannabis markets and the sustainability of such growth; our ability to successfully and timely execute our business and operational plans; the development of favorable federal and state cannabis regulatory frameworks in the United States applicable to multi-state cannabis operators; and adverse changes in the public perception of cannabis.  Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of current and future market conditions. Actual results, performance or achievement could differ materially from that expressed in, or implied­.

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SOURCE Harvest Health & Recreation Inc.

FAQ

What does the settlement with Falcon International Corp. mean for Harvest Health?

The settlement allows Harvest to focus on its core operations while owning 10% of Falcon.

How much equity does Harvest Health hold in Falcon after the settlement?

Harvest Health owns 10% of Falcon as a result of the settlement.

What was the original agreement between Harvest Health and Falcon International Corp.?

The original agreement was a merger announced on February 14, 2019, which was later terminated in January 2020.

What is the exercise price for Harvest's warrants in Falcon?

The exercise price for Harvest's warrants in Falcon is US$1.91.

What impact did the settlement have on Harvest's stock performance?

The settlement may positively impact investor confidence, allowing Harvest to focus on growth.