Multistate marijuana operator Harvest Health & Recreation said it has settled litigation in connection with the Washington state portion of an $85.8 million deal the company announced last March to buy the Seattle-based Have a Heart retail group.
Arizona-based Harvest filed litigation last April against Have a Heart and some of the owners of Interurban Capital Group (ICG), which formerly owned the Washington state stores.
Under the settlement, Harvest won’t acquire the five Have a Heart retail marijuana outlets but instead will receive a $12 million, secured five-year promissory note at 7.5% annual interest.
The settlement also cancels the 42,378 Harvest shares issued to the previous owners of ICG as well as an agreement that Harvest provide services to the Washington state stores.
“We are pleased to settle this dispute and move forward,” Harvest Chief Executive Officer Steve White said in a statement.
“We are very excited to continue to focus on our core business operations as we execute on our plan to return to profitability.”
Harvest is the leading medical cannabis operator in Arizona, which is transitioning to adult use after voters approved a recreational cannabis measure on Election Day.
Harvest also has operations in California, Florida, Maryland, North Dakota and Pennsylvania.
– Jeff Smith