California marijuana firm Falcon seeks $50 million from Harvest

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California-based
cannabis
firm
Falcon
International
wants
a
$50
million
break-up
fee

from
multistate
operator
Harvest
Health
&
Recreation.

Falcon
is
asking
for
a
cash
payment
as
part
of
a
move
to

dismiss
a
complaint
 that
Arizona-based
Harvest
filed
Jan.
8.

In
that
lawsuit,
Harvest
sought
to
terminate
its
acquisition
of
Falcon,
a

deal
that
was
announced

in
February
2019.

As
part
of
the
suit,
Harvest
is
seeking
the
$50
million
it
paid
to
Falcon
as
part
of
the
merger
agreement.

Falcon
described
the
planned
acquisition
as
a
“heavily
negotiated
merger
agreement.”

The
company
noted
in
a
statement
that
“amounts
previously
funded
by
Harvest
to
Falcon
are
convertible
into
Falcon
equity
at
Harvest’s
or
Falcon’s
option”
and
are
“unlikely
to
be
paid.”


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