August 01, 2019 – PHOENIX, Ariz. – Harvest Health & Recreation, Inc. (CSE:HARV, OTCQX: HRVSF) (the "Company"), a vertically integrated cannabis corporation organized under the laws of British Columbia, Canada and with one of the largest and deepest footprints in the U.S., today announced that the Board of Directors ("Board") has given consent to increase the company's internal foreign private issuer ("FPI") threshold from 40.00% to 49.99%, in compliance with the Company's Articles. Currently, Harvest is an FPI in the United States, meaning less than 50.00% of shares are held of record, directly or indirectly, by residents of the United States.
Upon execution of the Board consent, the 49.99% threshold will apply under the Articles, instead of the current 40.00% threshold, and conversions of Multiple Voting Shares ("MVS") to Subordinate Voting Shares ("SVS") will be permitted under the Articles as long as they do not result in the new 49.99% threshold being exceeded. As the Articles require the company to use "commercially reasonable efforts" to maintain its status as an FPI, any conversions would remain subject to the responsible officer's determination that such conversions would not exceed the new 49.99% threshold.
"Our vision is to become the most valuable cannabis company in the world and the adjustments related to the FPI per the Board consent will help fuel Harvest's growth."
– Harvest CEO Steve White.
"This is a particularly acquisitive time in the industry and access to significant capital is crucial to long-term success and to bringing trusted, high-quality cannabis experiences to U.S. consumers," White concluded.
The consent also permits the Board, or a committee thereof, to designate an officer to make certain FPI determinations, and ratifies any prior failures to comply with the Articles as they relate to the FPI matters.
About Harvest Health & Recreation, Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation, Inc. is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have one of the largest footprints in the U.S., with rights to more than 210 facilities, of which approximately 135 are retail locations, and more than 1,695 employees across 18 states and territories. Since 2011, the company has been committed to expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest's mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world.
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