Yahoo Finanza Diego Pellicer Worldwide, Inc. settles lawsuit with Colorado operator by entering into a Binding Settlement Term Sheet, receives conditional $4.5 Million Confessions of Judgment
Diego Pellicer Worldwide, Inc. is set to become owner/operator of a cannabis dispensary and product manufacturing facility
RENO, Nev., Dec. 15, 2022 (GLOBE NEWSWIRE) -- Diego Pellicer Worldwide, Inc. (“Diego” or the “Company”) (OTC Market: DPWW), a premium cannabis company, announced that it has signed a binding settlement term sheet (“Term Sheet”) with its Colorado tenants, Royal Asset Management, LLC (“RAM”) and Venture Product Consulting, LLC (“VPC"). Pursuant to the provisions in the Term Sheet, the Parties shall enter into two Membership Interest Purchase Agreements to which Neil Demers (“Demers”), majority owner of RAM and VPC, will transfer and cause to transfer 100% of all membership interests of RAM and 99% of membership interests of VPC to Diego, a subsidiary of Diego, or a special purpose acquisition company designated by Diego (the “Transaction”) ). The Agreement resolves a lawsuit in which the Company alleged that RAM was in breach of contract for failure to make payments to the Company under certain sublease agreements, and also a certain promissory note that the Company issued to RAM (the “Action”). In addition, both RAM and VPC signed a Stipulation for Entry and Confessions of Judgment (the “Confessions”) in favor of Diego in the amounts of $4,435,000 and $65,000, respectively, should the Transaction fail to close. The Confessions will not be enforceable and the Company shall not file the Confessions in any court until the later of (1) the date on which RAM’s debt to Capital 420, LLC is repaid, or (2) May 31, 2023. In addition, upon the closing of the Transaction, the Company will issue 12.5% of the Company’s outstanding shares of common stock to Demers, as of May 21, 2023, and will issue 28.3% of the Company’s outstanding shares of common stock to Phi Beta Capital Advisors, Ltd, as of May 21, 2023.
The Transaction is subject to certain conditions that are included within the Term Sheet, including, but not limited to, the approval by the Colorado Marijuana Enforcement Division.
“With this agreement, the company is looking at an even brighter future, positioned for additional acquisitions and product development. We’re pleased to reach this resolution as we forge ahead in the cannabis marketplace,” said Nello Gonfiantini III, Chief Executive Officer, Diego Pellicer Worldwide, Inc. “The Company is monetizing $4.5 million by merging with its Colorado tenant, which currently operates a dispensary and cannabis products manufacturing facility. We believe this agreement puts the Company on a solid path for profitability and expansion.”
The Agreement, the Action and the Confessions were filed as exhibits on a Current Report on Form 8-K the Company filed with the Securities and Exchange Commission, and is available for review via the OTC Markets website, https://www.otcmarkets.com, under the stock symbol “DPWW”.
About Diego Pellicer Worldwide, Inc. (OTC Market: DPWW)
Diego Pellicer Worldwide, Inc. is a premium cannabis company. The company actively seeks strategic acquisitions, partnerships and collaborations in cannabis, hemp and CBD companies.
About Royal Asset Management, LLC (RAM) operates FROST EXOTIC CANNABIS DISPENSARY, formerly known as DIEGO PELLICER – COLORADO. The award-winning team has gained recognition as “BEST NEW DISPENSARY” in Denver, CO. The management team has operated numerous dispensaries, grow facilities and manufacturing operations in Colorado since the State legalized cannabis.
About Venture Product Consulting, LLC (VPN) is an infused product, concentrate, and white label manufacturing company located in Denver, CO. VPN manufactures its own products such as RISE vape pens and concentrates. VPN also contracts with retail operators to produce additional items such as cannabis infused GUMMIES, chocolates, and other confection items.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). All statements that are not historical facts are “forward looking statements.” The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. Investors should consider this cautionary statement and furthermore, no assurance can be made that the transaction described in this press release will be consummated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
MEDIA CONTACTS: | Christopher Strachan, chris@diego-pellicer.com or |
| Nello Gonfiantini III, nello@diego-pellicer.com |
WEBSITE: | www.diego-pellicer.com |
