International Cannabrands Inc. dba Radiko Holdings (CSE: RDKO) (the “Company“) wishes to announce the settlement and withdrawal of the respective legal actions between the Company and its 51% subsidiary La Vida Verde, Inc. (“LVV“).
Steve Gormley, CEO of the Company commented: “I’m happy to report that Radiko Holdings, (formerly International Cannabrands) and La Vida Verde have resolved our dispute outside of court. I am grateful to the leadership at LVV for their willingness to settle this matter internally and for their commitment to the success of their company and in turn the organization as a whole. I think this settlement reflects a true alignment of the parties’ interests and is structured for success.”
Bryce Berryessa, President and Co-Founder of LVV commented: “My team and I remain committed to the success of La Vida Verde and to its partnership with Radiko Holdings. I am glad to be moving forward with a collaborative spirit and am eager to execute on a shared vision that positions us both for growth.”
The settlement agreement dated April 21, 2020, provides for the rescission of the September 19, 2018 agreement and defines the path forward for the two companies. The Company’s 51% ownership interest of LVV has been confirmed and the Company has renewed its commitment to invest a total of US$700,000 in the capital of LVV (the “Capital Investment”) over the course of the next several months, with the final payment US$300,000 to be made by September 30, 2020. In lieu of the outstanding notes of US$1.2 million due to LVV shareholders, the shareholders of LVV have agreed to an earnout, and will obtain this compensation as a percentage of LVV’s future earnings as cash flow permits. As security for the payment of the Capital Investment, the Company has agreed to pledge approximately 16% of LVV. In addition, Julie Brooks, currently COO of LVV, will ascend to the CEO position of LVV, and be granted Board Observer status for the Company’s Board of Directors, along with Bryce Berryessa, President of LVV. The Company’s representation on the Board of LVV will remain the same as the original agreement, with two members on the LVV Board.
Steve Gormley concluded, “I am thrilled to see Julie step into this pivotal role and look forward to leveraging her extensive expertise across some of the Company’s other opportunities. Ms. Brooks brings 33 years of manufacturing, logistics, and distribution experience, and has spent 19 years in leadership roles with an industry focus in food, pharmaceuticals, and agriculture, and an advanced focus in regulatory compliance. er experience and expertise will be vital to our growth as we go forward.”