Harvest Health and Recreation (CSE: HARV) has dismissed its previously announced lawsuit against that of Falcon International, a recently filed Form 7 with the Canadian Securities Exchange has shown. The lawsuit was in relation to allegations that Falcon had failed to provide auditable financial statements, and that multiple legal obligations have failed to be met.
The lawsuit was originally announced to the market on January 7, with Harvest making a number of allegations against potential acquiree Falcon International. Claims against Falcon were numerous, and included allegations of illegally bringing cannabis product across state lines which is a federal offence.
A subsequent news release issued by Falcon International highlights that the firm was certain they would win the lawsuit, but was short on details. Falcon was also certain that they would be privy to a $50 million break free as described within the contract. This however omitted the fact that as a result of the lawsuit, Harvest Health was looking to terminate and rescind the prior entered merger agreement.
Whatever the case may be, in a Form 7 filed this morning by that of Harvest Health with its listing exchange, the company identified that it had dismissed the Falcon lawsuit, and instead the parties had agreed to send the dispute to the American Arbitration Association as of February 26, 2020.
No further details were provided by the company on the matter.
Harvest Health last traded at $2.75 on the CSE.
Information for this briefing was found via Sedar, Falcon International and Harvest Health and Recreation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
