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 Pennsylvania Department of Health's decision on AGRiMED:

It is our goal at Harvest to grow our footprint organically and through M&A. We have a track record of success in both. This success, though, means that we have to navigate Federal, State and local regulations. Since 2011, we have worked hard to expand our footprint while complying with all applicable laws and regulations, and that focus continues to be a key priority today.

Accordingly, we were discouraged to see the decision by the Pennsylvania Department of Health to deny the grower/processor permit renewal application of a single cultivation facility, AGRiMED Industries of PA, LLC. This decision appears to be based, in large part, on alleged failures of prior management of AGRiMED that occurred prior to Harvest’s acquisition and operation of the company. Indeed, the Department of Health confirmed that they were taking no action against Harvest for their limited involvement in AGRiMED. Despite Harvest’s diligent efforts to resolve AGRiMED’s financial disputes, legal disputes and regulatory issues and raise the operational standards to set the beleaguered company on a compliant track, consistent with Harvest’s industry-leading operational standards, the Department appears to have adopted a cumulative effect to infractions related to the permit. A permit which, according to the DOH, has never been transferred to Harvest. The Department’s decision unfortunately penalizes Harvest for alleged mismanagement of prior ownership while not considering Harvest’s good faith effort to improve the facility and bring the highest quality product to the patients of Pennsylvania. While Harvest intends to take all necessary legal action to address the AGRiMED issue, Harvest will continue to work cooperatively with the Department to differentiate its management from the legacy operators of AGRiMED and will continue to demonstrate its full compliance with Pennsylvania medical marijuana program rules. Harvest is fully aligned with the Department’s mandate to ensure compliance with its regulations.

The Department of Health’s decision is not related to any other Harvest owned or operated cannabis permits in Pennsylvania. Harvest does not expect any change to its 2019 or 2020 plans because of the Pennsylvania Department of Health’s announcement concerning AGRiMED.

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. We hope you’ll join us on our journey: https://harvestinc.com.

Forward-Looking Statements

This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Harvest with respect to future business activities. Forward-looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market, (ii) the ability of the Company to successfully achieve its business objectives, (iii) plans for expansion of Harvest, and (iv) expectations for other economic, business, and/or competitive factors.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects Harvest management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Harvest believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the potential impact of an announcement of a going public transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company's business plans; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Harvest and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Harvest has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Harvest does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.