Pennsylvania’s Fight Against Cannabis Giant Harvest Could Take Down Two Other Growers

Analysis: The DOH’s latest demands and good old investigative journalism uncover potential legal problems for either Phase I Grower Processor

The path forward for the two remaining Phase I Grower Processors that still haven’t supplied a gram of cannabis to Pennsylvania patients became clearer this past week.

But what was uncovered raises more questions than answers.

Arizona-based Harvest Health & Recreation announced that it acquired Franklin Labs’ license and Reading-based grow space in an April 9 press release. That followed its win of six new permits across the state earlier in the year as part of the second awarding of remaining dispensary licenses.

The story got even stranger Friday after the Inquirer’s Sam Wood revealed that documents obtained showed Harvest had also entered into a “management services agreement” with Carlmichaels-based AgriMed.

While not necessarily an acquisition, these agreements hand most day-to-day business operations over to a third party, so Harvest would have a controlling stake in both grows.

If Harvest is successful, altogether it will run up to 21 dispensaries in the state, and two growers. But this is prohibited by Pennsylvania law.