Pure Harvest Cannabis Group, Inc. cancelled the acquisition of 51% of the outstanding membership interests in How Smooth It Is, Inc. ("HSII").
July 28, 2020
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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.
Pure Harvest Corporate Group, Inc. manufactures, distributes, and sells a range of cannabis products including hemp/ cannabidiol (CBD) and marijuana/ tetrahydrocannabinol (THC) consumer products. The Company's THC product line at its Dumont dispensary includes bulk flower, pre-rolls, and THC concentrates. The Company also sells THC distillate as an ingredient or raw material to other licensed marijuana infused products manufacturers within the State of Colorado along with wholesale THC concentrates, such as wax and shatter. It operates various segments of the cannabis and hemp- CBD industries with a focus on health and wellness products and applying education, research and development, and technology to each sector. It is also involved in the acquisition and operation of licensed marijuana cultivation facilities, manufacturing facilities, and dispensaries.