Harvest Health & Recreation, Inc., a vertically integrated cannabis company with one of the largest footprints in the U.S., has announced a definitive agreement to acquire Falcon International Corp, 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,” said Harvest Executive Chairman Jason Vedadi. “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.”
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.Cannabis Business Worldwide