Business
Pineapple Express Finalizes Asset Acquisition of THC Industries Inc., Including THC.COM, and the ‘THC’ Trademark
Pineapple Express Finalizes Asset Acquisition of THC Industries Inc., Including THC.COM, and the ‘THC’ Trademark.
About this update from Pineapple, Inc.
[{"type":"text","content":"\nCompany acquires valuable domain, trademark, and operating business of THC Industries; Company intends to audit records and become a fully reporting issuer\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLOS ANGELES, Feb. 16, 2016 (GLOBE NEWSWIRE) -- PINEAPPLE EXPRESS, INC. (OTCPink:PNPL) (the “Company”), a publicly traded company that offers cannabis industry consulting, technology, investments, turn-key property rentals, and branding concepts to businesses in the legal cannabis industry, announced today that it has finalized an acquisition of the business and assets of THC Industries, Inc. (“THC”), the web domain www.thc.com, and the trademark THC®. THC has been an operating business and was incorporated in California since 1996, making THC one of the first internet based cannabis related businesses in the nation.The Company will pay the THC shareholders consideration consisting of (i) a cash payment in the amount of $1,000,000, (ii) $4,000,000 of the Company’s common stock, or 2,275,133 shares based on the closing stock price on December 3, 2015, the date the parties entered into a letter of intent and (iii) a $600,000 note (part of the $1,000,000 cash payment) secured by all of the purchased intellectual property that is payable in two equal installments on the 60 day and 90 day anniversaries of closing.  $150,000 of the initial cash payment shall be held in escrow to cover seller’s expected personal litigation costs related to trademark enforcement of the purchased IP.  Approximately 95% of the shares shall be issued to the main shareholder of THC Industries, Inc., Ramsey Salem, who along with all other shareholders receiving shares from the Company in this transaction have entered into two-year lockup agreements with the Company restricting any share sales during that period. Mr. Salem executed a five-year employment agreement and will serve as CEO of THC Industries, LLC, the Company’s new wholly owned subsidiary. The THC shareholders shall have the option to require the Company to purchase from them up to 1,478,836 shares at a price of $0.68 per share for the period commencing on the 24 month anniversary of the closing and ending on the 30 month anniversary of the closing; provided however that they may only exercise this option if the Company’s stock p...