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California marijuana firm Falcon seeks $50 million from Harvest

California-based cannabis firm Falcon International wants a $50 million breakup 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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