PLANO, Texas, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCPK: RMHB) announced today that the Company has finalized a Global Settlement Agreement with Raw Pharma, LLC.
On April 30, 2020, Rocky Mountain Productions, Inc. entered into an Asset Purchase Agreement with Raw Pharma, LLC to purchase all the assets of Raw Pharma, including all machinery, equipment, and components for a total purchase price of $3,250,000. A portion of the purchase price included $500,000 non-assessable shares of Purchaser’s common stock, which stock was issued under Rule 144 of the Securities Act, to Raw Pharma at Closing, and the assumption of certain loans secured by the machinery and equipment. Raw Pharma agreed to finance the balance of the purchase price per the terms and conditions established in the Asset Purchase Agreement. Since Closing, a total of $255,000 has been paid to Raw Pharma, leaving an unpaid balance of $2,495,000.
The Asset Purchase Agreement provided for Raw Pharma to assign its sublease agreement to Rocky Mountain Productions but unfortunately, and through no fault of either party, the landlord refused to consent to such assignment due to co-packing of CBD beverages on its leased premises even though Raw Pharma co-packed CBD beverages for almost a year at this location. This uncertainty, together with other issues relating with and to the Asset Purchase Agreement, resulted in Raw Pharma having to renegotiate the Asset Purchase Agreement.
As a result of the renegotiated settlement agreement, the purchase price under the Asset Purchase Agreement, and thus the overall balance owed to Raw Pharma, was reduced by approximately $1,270,000. The Asset Purchase Agreement was amended, and supplemented as follows:
- Rocky Mountain Productions shall endeavor to make all reasonable and diligent efforts to pay off and/or refinance all of the Chase Bank loan balances in the amount of $954,515;
- Rocky Mountain Productions shall pay Raw Pharma $100,000, with monthly payments of $15,000 commencing June 1, 2021 until paid off;
- 4,700,000 shares of Rule 144 stock to be issued to Raw Pharma which had a value of $170,000 as of October 29, 2020. Rocky Mountain Productions is currently negotiating a lease agreement with another landlord and anticipates starting the relocation process of its beverage line soon. Rocky Mountain Productions continues to co-pack hand sanitizer at the current facility.
About Rocky Mountain High Brands
Rocky Mountain High Brands, Inc. (OTCPK: RMHB) is a consumer goods Company that specializes in health conscious hemp-infused beverages and a naturally high alkaline spring water under the name Eagle Spirit Spring Water. The Company also co-packs beverages and hand sanitizers. Our mission is to assist others in their journey to live productive, fulfilling, and healthy lives.
For product information, please visit: www.hempd.com and www.eaglespiritwater.com.
Information about Forward-Looking Statements: This release may include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions and the ability to attract and retain skilled personnel. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company’s filings with the SEC. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company’s business, financial condition, and results of operations. The Company is not obligated to revise or update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Contact:
Investor Relations:
Paul Knopick
E & E Communications
pknopick@eandecommunications.com
940.262.3584