This was discussed on Tuesday by Harvest CEO Steve White, during his company’s quarterly results call. He also said that Harvest and Interurban have both entered this acquisition discussion in good faith and that disagreements arose only after the transaction had closed.
Although no specifics about the litigation were disclosed, and Interurban officials weren’t available for comment, White had this to say:
“We anticipate we will ultimately prevail with that litigation.”
The groups also ran into early problems with the transaction when multiple Have a Heart medical dispensaries in Iowa were “abruptly shuttered”, although White has maintained that those dispensaries “were not a key part of that acquisition.”
Former Interurban employees have contacted Marijuana Business Daily to complain about Harvest’s cut of the corporate headcount at Have a Heart by nearly 80%. Firing back, a spokesperson for Harvest said the number was closer to 47%.
To add to the already tumultuous business deal, questions were also raised regarding the dispensary licenses it will be bringing with it. These licenses are not in the four key states that Harvest operates in: Arizona, Maryland, Florida, and Pennsylvania.
Following this news, White went on to say that Harvest plans to develop its business into California and Washington state, where Have a Heart practices, in order to benefit its core markets.
Harvest Health reportedly had full-year revenues of $116.8 million and a fiscal-year net loss of $173.5 million