Pure Harvest Cannabis Group, Inc. (OTCPK:PHCG) entered into an agreement to acquire 51% of the outstanding membership interests in How Smooth It Is, Inc. ("HSII") for $4.3 million on March 12, 2020. The consideration consists of $1.5 million in cash and 7 million restricted common stock units of Pure Harvest. In connection with this acquisition, Leonard Cusenza, the principal shareholder of HSII was appointed as HSII's Chief Executive Officer. The acquisition is subject to a number of conditions, including the approval of the Michigan Department of Licensing and Regulatory Affairs. Pure Harvest Cannabis Group, Inc. (OTCPK:PHCG) cancelled the acquisition of 51% of the outstanding membership interests in How Smooth It Is, Inc. ("HSII") on July 29, 2020. As a part of the termination agreement the sole shareholder of HSII agreed to pay the Pure Harvest $2.15 million by August 7, 2020. and HSII agreed to manufacture up to 24 separate products for Pure Harvest (such as edibles and vaporizers) upon terms agreeable to both Pure Harvest and HSII. The products manufactured by HSII will be sold under Pure Harvest brands with Pure Harvest receiving royalties from the sale of the products.