Harvest Health Sees Complaint Filed Against Firm By Landlord Alleging Conspiracy To Commit Fraud Among Other Claims

It appears that hard times have fallen on Harvest Health (CSE: HARV), albeit rather quietly. The company announced in its Form 7 filing with the Canadian Securities Exchange that it has seen one of its landlords file a complaint against the issuer as a result of a number of issues, largely stemming from the firms failure to pay rent for certain leases.

Within the filing, Harvest Health states that the complaint is related to the failure to pay rent at a retail location that was formerly branded under the Have A Heart banner, located in Council Bluffs, Iowa. However, the complaint has been filed by the landlord Rainbow Realty Group LLC and a number of related entities, including Rainbow HAH Council Bluffs LLC, Rainbow HAH Santa Cruz LLC, Rainbow HAH Coalinga LLC. The names of the related entities suggest that the complaint is related to more than one single retail location.

Images sent to The Deep Dive last month support the notion that the company hasn’t paid certain rents due for dispensaries now formerly owned by Harvest Health in California. The notice, affixed to the front door of one Harvest Health location, indicates that the company was in arrears of over $386,000 in rent payments.

Specifically, the complaint has been filed against Harvest Health and certain of its subsidiaries, along with certain current and former officers. It’s also been filed against Interurban Capital Group, Hightimes Holdings Corp (whom acquired Interurban recently) and “others.”

Rainbow Realty has alleged a number of of items against Harvest and it’s associates, including:

  • Breach of lease,
  • Breach of guaranty,
  • Breach of the implied covenant of good faith and fair dealing,
  • Fraud in the inducement,
  • Conspiracy to commit fraud,
  • Breach of fiduciary duty.

The complaint is said to be in the pleading stage of litigation, with no discovery having commenced and no response filed by Harvest Health. Harvest has stated that it intends to vigorously defend itself., claiming that the allegations lack merit and that they plan to prosecute claims against the other defendants.


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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