PHOENIX--(BUSINESS WIRE)--Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today released the following response to the Harvest entities’ agreement with the Pennsylvania Department of Health.
On August 16th, after concluding negotiations with the Pennsylvania Department of Health, two of our affiliate companies, Harvest of Northwest PA, LLC and Harvest of North Central PA, LLC, will no longer pursue the permits granted to them. This means those entities will not pursue the operational status of their two already constructed facilities located in New Castle and Shamokin. Instead, the remaining Harvest affiliates will focus on the five permits they have been granted, which allows them to open up to 15 dispensaries across the Commonwealth.
On December 18th, 2018, six Harvest affiliates were each granted a dispensary permit by the Commonwealth of Pennsylvania. These six permits were each applied for through separate and distinct legal entities, each bearing some form of the Harvest name along with identical ownership and management for each entity. Each entity moved forward with recruiting employees, building their individual dispensary and planning to become operational.
During the construction of these dispensaries, a question arose by the Department of Health concerning the use of a Small Diverse Business, Environmental Construction Services, Inc. (“ESCI 360”). ESCI 360 was identified in each of the six applications as the General Contractor (GC). Because ESCI 360 was not able to act as a GC for all six of the permitted locations, the Harvest entities transitioned the role of GC to a different contractor without notifying the Department of Health. Despite this error, the Harvest Entities still utilized ECSI 360 as a mechanical, electrical and plumbing contractor on all of the dispensaries and paid ECSI 360 the amount specified in...