Harvest Health & Recreation (CSE: HARV) this morning issued a brief press release, revealing that it has entered into a settlement with Falcon International. The settlement is in relation to a failed merger that was originally entered into in February 2019.
Financial details of the original transaction were murky at best, with the company slated to be “acquired for equity.” The transaction however fell apart in January 2020, at which point Harvest sued the California-focused operator while demanding termination of the merger agreement.
The two entities however have now entered into a settlement in connection with the dispute, with final dismissal of all litigation and arbitration being met. Under the terms of the settlement, Harvest Health now owns a 10% stake in Falcon, with each share it owns coming with a 10-year warrant to acquire two additional common shares of the operator for US$1.91 per warrant, which is subject to anti-dilution adjustments.
Harvest Health last traded at $4.70 on the CSE.
Information for this briefing was found via Sedar 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.
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