California-based cannabis firm Falcon International wants a $50 million break-up fee from multistate operator Harvest Health & Recreation.
Falcon is asking for a cash payment as part of a move to dismiss a complaint that Arizona-based Harvest filed Jan. 8.
In that lawsuit, Harvest sought to terminate its acquisition of Falcon, a deal that was announced in February 2019.
As part of the suit, Harvest is seeking the $50 million it paid to Falcon as part of the merger agreement.
Falcon described the planned acquisition as a “heavily negotiated merger agreement.”
The company noted in a statement that “amounts previously funded by Harvest to Falcon are convertible into Falcon equity at Harvest’s or Falcon’s option” and are “unlikely to be paid.”