Harvest Health & Recreation, an Arizona-based multistate marijuana operator, on Wednesday said it has filed a federal lawsuit against Falcon International seeking to terminate its merger agreement with the California-based company.
Harvest’s complaint, filed in U.S. District Court in Arizona, alleges that Falcon failed to meet its legal obligations, including failing to provide auditable financial records to Harvest.
In a statement, Harvest said it remains committed to the “long-term potential of legal cannabis sales in California,” but, in the current market, it is “difficult to operate profitably there today.”
Earlier this week, Harvest said it plans to pay $87.5 million for Interurban Capital Group in Seattle.
Interurban is the owner and operator of Seattle-based Have a Heart, which has a total of 11 dispensaries in California, Washington state and Iowa. The company also has licenses for seven marijuana retail sites in California.