PHOENIX, February 14, 2019–(BUSINESS WIRE)–Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company with one of the largest footprints in the U.S., announced a definitive agreement to acquire Falcon International Corp. (“Falcon”), a California cannabis company and leader in cultivation, manufacturing, wholesale distribution and brand development, for a non-material undisclosed amount of stock.
California is a critically important state for any national cannabis company, Our agreement to acquire Falcon accelerates our expansion into the state and adds brands that were successful in the most competitive market in the country for product development.
Harvest Executive Chairman Jason Vedadi
The acquisition will include:
- Leadership Team: A management team comprised of business and cannabis industry professionals with expertise managing high-growth companies.
- Licenses: 16 cannabis licenses spanning across the industry’s cultivation, manufacturing and distribution verticals.
- Distribution: Falcon is one of the state’s largest distribution platforms providing Harvest with access to over 80 percent of the California storefronts. Falcon’s strong distribution network gives Harvest the ability to distribute its own high-quality brands to dispensaries across California.
- Manufacturing: Sophisticated automation and production capabilities with capacity for over one million packaged units per month. The company is currently expanding their facility to triple capacity, which includes additional space for joint ventures or other co-located manufacturing relationships.
- Cultivation: Deep cultivation expertise and a robust supply chain supporting indoor, greenhouse and outdoor flower brands.
- Brands: A portfolio of top-selling California brands including: Cru Cannabis™, Littles™ and High Garden™.
Harvest will use Falcon as the backbone of its California operations and foundation for national brand distribution.
“The acquisition of Falcon provides a home for our manufacturing and distribution businesses throughout California,” said Vedadi. “We look forward to taking the brands acquired and leveraging our footprint to quickly move them across the country.”
Pursuant to the merger agreement, Harvest will acquire Falcon for equity. The transaction is subject to customary conditions of closing and is expected to close in the first half of 2019.
About Harvest Health & Recreation, Inc.
Harvest Health & Recreation Inc. is one of the first consistently profitable, vertically integrated cannabis companies with one of the largest footprints in the U.S. Harvest’s complete vertical solution includes industry-leading cultivation, manufacturing, and retail facilities, construction, real estate, technology, operational, and brand building expertise — leveraging in-house legal, HR and marketing teams, along with proven experts in writing and winning state-based applications. The company has more than 625 employees with proven experience, expertise and knowledge of in-house best practices that are drawn upon whenever Harvest enters new markets. Harvest’s executive team is comprised of leaders in finance, compliance, real estate and operations. Since its founding in 2011, Harvest has grown its footprint every year, has been ranked as the third largest cultivator in the U.S. and currently owns licenses for more than 140 facilities across the U.S. Harvest shares timely updates and releases as part of its regular course of business with the media and the interested public. For more information, visit: https://www.harvestinc.com/.
Falcon International Corp. is a vertically integrated California cannabis company and leader in cannabis R&D and brand development. The company’s statewide distribution platform and house of brands currently serves over 80 percent of the dispensaries in California.