Har­vest One re­sponds to Gedeon law­suit, says lit­tle

Stockwatch Daily - - CONSUMER GOODS - By Mike Caswell

HAR­VEST ONE Cannabis Inc. de­nies that it owes any­thing to An­dreas Gedeon, its former chief ex­ec­u­tive of­fi­cer. Mr. Gedeon is su­ing the com­pany in the Supreme Court of Bri­tish Columbia over his fir­ing, claim­ing that Har­vest One owes him $525,000. He said that the com­pany agreed to pay the money af­ter it dis­missed him for no rea­son, but the pay­ment never ar­rived.

The de­nials from Har­vest One are con­tained in a re­sponse that the com­pany filed at the Van­cou­ver court­house on Oct. 11, 2018. The brief doc­u­ment says lit­tle about the cir­cum­stances of Mr. Gedeon’s dis­missal. Har­vest One agrees that it en­tered into an agree­ment with Mr. Gedeon af­ter he left the com­pany, but it claims that it does not owe him any­thing. The com­pany does not elab­o­rate. It asks that the suit be dis­missed.

The sparse re­sponse from Har­vest One comes over two months af­ter Mr. Gedeon sued the com­pany. In a no­tice of claim dated Aug. 30, 2018, he iden­ti­fied him­self as the CEO of Har­vest One un­til July 3, 2018, when the com­pany re­placed him. Har­vest One hired Grant Froese, who was the chief op­er­at­ing of­fi­cer of Loblaw Com­pa­nies Ltd.

The tran­si­tion, as de­scribed by Mr. Gedeon, was sup­posed to be an am­i­ca­ble one. Mr. Froese had more cor­po­rate ex­pe­ri­ence and was to men­tor Mr. Gedeon. The even­tual goal was to have Mr. Gedeon be­come CEO again in two years. In the mean­time, Mr. Gedeon was to re­tain a se­nior po­si­tion at Har­vest One, the suit claimed.

The plan, at least as Mr. Gedeon de­scribed it, was a short-lived one. Mr. Gedeon was un­happy with the po­si­tion that the com­pany of­fered him, that of vice-pres­i­dent of busi­ness de­vel­op­ment. He said that the po­si­tion was con­sid­er­ably in­fe­rior to his prior role and was in­con­sis­tent with the plan to have him re­turn to the CEO po­si­tion. Ac­cord­ingly, he de­clined the job. Three days later, Har­vest One fired him.

Mr. Gedeon claimed that af­ter his dis­missal, Har­vest One agreed to pay him $750,000 with re­spect to his ter­mi­na­tion. The ac­tual amount that he would re­ceive would be $525,000, af­ter de­duct­ing the $225,000 that the com­pany would be ob­li­gated to re­mit to the Canada Rev­enue Agency. Ac­cord­ing to the suit, the com­pany never sent the money. When Mr. Gedeon in­quired about the pay­ment, Har­vest One ac­cused him of breach­ing his obli­ga­tions, he said. The com­pany did not pro­vide any par­tic­u­lars.

Van­cou­ver lawyer Robyn Jarvis of Har­ris & Com­pany LLP filed the suit on Mr. Gedeon’s be­half. An Ed­mon­ton lawyer, Jim Sch­midt of Ben­nett Jones LLP, filed Har­vest One’s re­sponse.

Ja­son Michael Bed­nar, Anne Bhanu Cho­pra, An­dreas Gedeon, Will Ste­wart, Peter Wall

(HVT) Shares: 173,621,452

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