In White We Trust? Harvest CEO consolidates control amid 44% stock drop

Consolidating power to a single individual, as seen with Harvest Health and Recreation’s announcements this week, can be a risky proposition for any company. It’s not an automatic red flag, but it is something that investors should keep a close eye on.

Executive Chairman Jason Vedadi resigned from Arizona-based Harvest after trading his controlling shares to CEO Steve White in exchange for a license and lease from the company.

White now has 44% of the vote and 4% of the economics on a pro forma basis; Vedadi has 4% of the vote and 8% of the economics, and all other shareholders have 52% of the vote and 88% of the economics – putting White firmly in control.

Previously, White had 33% of the vote, Vedadi had 35%, and all other shareholders had 32%, making all of their stakes roughly equal.

Read Now

Sign inJoin for instant access