Harvest Health & Recreation (OTC:HRVSF) is set to open three dispensaries in Ohio, following a settlement with state regulators.
In the settlement agreement, signed by its related company, Harvest of Ohio, and the state's Board of Pharmacy, the former will make a $500,000 donation to the Ohio prescription drug reporting database. In return, Harvest of Ohio will be allowed to open the three dispensaries.
In a separate agreement reached with the Ohio Department of Commerce, another Harvest Health-affiliated company -- Harvest Grows -- will be allowed to open the growth and processing facility.
Last January, Harvest Health's affiliates together won provisional licenses to operate the four facilities. Soon thereafter, however, the state raised a dispute about both Harvest of Ohio's and Harvest Growth's claims on their applications that they were majority-owned by a person belonging to an "economically disadvantaged group." The state then delayed the opening of the dispensaries and the growth and processing facility.
According to the terms of the settlement agreement, Harvest of Ohio will begin making its donation payments six months after receiving certificates of operation for the three dispensaries. The full $500,000 amount must be paid within one year from the initial payment. Provided the dispensaries pass routine state inspections of their premises, they are to be granted certificates of operation within two business days.
Harvest Health has not yet publicly commented on the settlement. The marijuana company's stock dipped by almost 1% in trading on Friday.