TEMPE, Ariz., May 15, 2020 /PRNewswire/ -- On May 15, 2020, Jason Vedadi (the "Acquiror"), the former Executive Chairman of Harvest Health & Recreation Inc. ( the "Issuer"), located at 1155 W. Rio Salado Parkway, Suite 201, Tempe, AZ 85281, announced today that the Acquiror, together with his joint actor, acquired beneficial ownership or control or direction over an additional 10,200 Multiple Voting Shares (the "Acquired Securities"), which represent 0.4% of the class of Multiple Voting Shares, from Steven White, and his joint actors, and in exchange disposed of ownership and control of 1,000,000 Super Voting Shares, which represent 50% of the class of Super Voting Shares.
Each Super Voting Share is entitled to 200 votes per share and is convertible into one Subordinate Voting Share and each Multiple Voting Share is entitled to 100 votes per share and is convertible into 100 Subordinate Voting Shares.
Immediately prior to the exchange, the Acquiror and his joint actors owned or controlled 3,006,400 Subordinate Voting Shares (representing 2.62% of the class), 1,000,000 Super Voting Shares (representing 50% of the class) and 439,126 Multiple Voting Shares (representing 17.65% of the class). The Multiple Voting Shares and Super Voting Shares were convertible into an aggregate of 44,912,600 Subordinate Voting Shares (representing 28.14% of the class, on a partially diluted basis). Immediately following the exchange, the Acquiror and his joint actors do not own or control any Super Voting Shares and now own or control 3,006,400 Subordinate Voting Shares (representing 2.62% of the Class), 449,326 Multiple Voting Shares (representing 18.07% of the class) which are convertible into an aggregate of 47,939,000 Subordinate Voting Shares (representing 30.03% of the class, on a partially diluted basis).
The Acquiror acquired the Multiple Voting Shares and disposed of the Super Voting Shares in a private transaction and not through the facilities of any marketplace. The 10,200 Multiple Voting Shares were acquired in exchange for 1,000,000 Super Voting Shares. The deemed value of the Multiple Voting Shares, based on a valuation report prepared by an independent firm, was US$109.06 per share (C$153.67), or US$1,112,400 (C$1,567,371.60) in the aggregate. The deemed value of the Super Voting Shares was US$1.11 (C$1.56) per share, or US$1,112,400 (C$1,567,371.60) in the aggregate. All US currencies have been converted based on the daily exchange rate published by the Bank of Canada on May 14, 2020 of US$1.00 = C$1.4090.
This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR (www.sedar.com) containing additional information with respect to the foregoing matters. A copy of this report may be obtained by contacting Howard Hintz, Phone: (602) 525-7131.
SOURCE Harvest Health & Recreation Inc.