MJ Harvest, Inc. completed the acquisition of Certain Assets of Elevated Agricultural Solutions LLC.
April 07, 2020
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MJ Harvest, Inc. (OTCPK:MJHI) agreed to acquire Certain Assets of Elevated Agricultural Solutions LLC for $1.8 million on March 3, 2020. Pursuant to the terms, MJ Harvest issues 1.4 million shares as a consideration. The acquisition include certain earn-out as well which will be paid in common stock of the company. The earn-out compensation due is based upon a sliding scale with a minimum of $100,000 due in 2020 if gross margin dollars equal at least $125,000 and a maximum of $400,000 due if gross margin dollars equal at least $500,000. For 2021, the minimum earn-out compensation will be $125,000 if gross margin dollars equal at least $250,000 and maximum earn-out compensation will be $500,000 if gross margin dollars exceed $1,000,000. MJ Harvest acquired the domain name and website "www.weedfarmsupply.com" along with other assets, and product distribution rights from Elevated Agricultural Solutions. Under terms of the acquisition, MJHI has also acquired: www.CannabisFarmerSupply.com; www.GanjaGrowerSupply.com; www.HempFarmerSupply.com; and www.HempGrowerSupply.com.
MJ Harvest, Inc. (OTCPK:MJHI) completed the acquisition of Certain Assets of Elevated Agricultural Solutions LLC on April 8, 2020. As of the filling on October 19, 2020, management has elected to cease doing the business acquired from Elevated and have tendered all of the domain names and intangible assets acquired back to Elevated effective October 15, 2020. The company and Elevated are currently discussing an unwinding agreement, including taking steps to cancel some or all of the shares issued by the company to Elevated for the acquisition, return by the company of domains and intangible assets to Elevated, release of the covenant not to compete, assignment of an exclusive distributorship obtained by the company after the acquisition over to Elevated, and mutual releases of any further obligations by each party to the other. An initial offer of settlement from the company to Elevated was rejected by Elevated.
MJ Harvest, Inc. develops, acquires, and distributes agricultural and horticultural tools and implements for sale primarily to growers and operators in the hemp and cannabis retail industry. The Company owns 100% of G4 Products LLC, (G4), which owns intellectual property for a patented manual Debudder product line marketed under the Original 420 Brand as the Debudder Bucket Lid and Edge (Debudder). The Company also owns 100% of AgroExports LLC (Agro), which serves as the domestic and international distribution arm for sales of agricultural and horticultural tools and implements. It operates a sales portal Website, www.procannagro.com, for online sales of its products. It has acquired manufacturing equipment and two cannabis licenses for a cannabis manufacturing and distribution business in Cathedral City, California, CCCA. It has also expanded its focus to include a minority investment interest in PPK Investment Group, Inc., a vertically integrated cannabis company in Oklahoma.