Shareholders Rally For New Directors As Cannabis MSO Enters $3M Asset Sale Deal

YourWay Cannabis Brands Inc. YOUR YOURF announced Thursday that it has entered into a definitive agreement to sell Labtronix, Inc.

Under the terms of the deal, YourWay has agreed to sell a 100% ownership interest in Labtronix, which sale will effectively allow the company to separate itself from:

• all lawsuits both existing and unknown against Labtronix;
• all existing liabilities of Labtronix both known and unknown; and
• all tax liabilities about Labtronix (where essential all operations of the company have been conducted).

As consideration for the sales deal, which would close upon receipt of all necessary approvals - YourWay will receive $3 million. The sum will be structured as a 5% secured note with a $300,000 payment due on closing and the balance paid in equal installments of principal and interest over the following 60 months.

'Kickback Schemes'

In October, marijuana giant Trulieve Cannabis Corp. TRUL TCNNF, Harvest Health & Recreation and Randy Taylor Consulting filed a verified complaint in the Arizona Superior Court against, among others, the company, Labtronix and YourWay Cottonwood. The plaintiffs claim that the defendants, their related entities and employees, participated in unlawful kickback schemes to the detriment of the plaintiffs.

See also: YourWay Cannabis Brands Terminates Contracts With Old Pal And Airo

Shareholders Disagree

Meanwhile, the company entered into the $3 million asset sale deal on the heels of Carl Saling III - who holds 28,814,400 shares, representing roughly 11% of the company's issued and outstanding common shares - filed a notice with YourWay Cannabis for the nomination of six highly experienced directors to be elected to its board of the annual general meeting scheduled for Dec. 28, 2023.

Why? Saling’s move revealed the company’s shareholders are “deeply alarmed by the company's current trajectory and the looming transaction to sell its primary revenue-generating asset at a price significantly below its fair market value.”

The proposed slate of director nominees, announced by Saling on Wednesday, includes Jamie L Pearson, Michael Wang, Steven Jung, Courtney Roundy, Curtis Floyd and Carl Saling III.

"We have convened a board of top-tier industry executives, poised to quickly steer the company back on track and protect shareholder interests," he said. "The future of the company and the shareholders' prospects for any returns hang in the balance. We must act now."

Saling’s efforts include stopping the proposed transaction, prioritizing the completion of the audit and restoring the company's trading status as quickly as possible. He also called on all shareholders to exercise their right to vote at the crucial upcoming meeting this month.

Saling co-founded Hollister Biosciences, a company that later evolved and rebranded itself as YourWay Cannabis.

•  47.10% with $GTBIF
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Now read: YourWay Cannabis Brands Focusing On Arizona Recreational Market, To Release Earnings By The End Of 2022

Photo: Courtesy of Elsa Olofsson on Unsplash