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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index sank 10.07 points to 429.99 Tuesday. Arizona-based Harvest Health & Recreation Inc. (HARV) fell 37 cents to $4.23 on 806,500 shares after announcing that its previous acquisition target, Falcon International Corp., is seeking $50-million (U.S.) for a cash breakup fee as a result of their deal failing to go through. The deal was first announced in February, 2019, for an undisclosed acquisition price.
Two weeks ago, Harvest Health made it official that the deal was off, filing a suit against Falcon in United States federal court, District of Arizona. In the suit, amongst other things, Harvest alleged that Falcon failed to provide auditable financial records, which Harvest says precludes it from completing the acquisition. Because of that, Harvest is requesting termination and rescission of the agreement, and a return of an undisclosed amount of money that Harvest paid to Falcon. For its part, Falcon denies any wrongdoing and has moved to dismiss the lawsuit for lack of jurisdiction. Despite today's 37-cent drop, Harvest is still up from $2.77 on Dec. 19 to $4.23 today.
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