Rocky Mountain High Brands, Inc. Vehemently Denies False and Disparaging Claims by Disgruntled Investor and Plans to Vigorously Prosecute its Claims
Rocky Mountain High Brands, Inc.
12 minutes ago
GlobeNewswire
DALLAS, April 21, 2016 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTC PINK:RMHB) today vehemently denied the false, malicious, and defamatory allegations asserted by the Shareholder Alert inappropriately released yesterday by the Law Office of A.A. McClanahan. Because that Alert misrepresented the status of litigation and misstated critical facts, the Company has requested the Law Office of A.A. McClanahan to formally, through a press release, issue a retraction of the Shareholder Alert Press Release which was submitted and released yesterday, April 20, 2016.
The Company will continue to vigorously prosecute claims against Roy J. Meadows and Donna Rayburn as set forth below, and in addition will amend its Florida lawsuit to seek more than $20 Million in damages and disgorgement of Meadows and Rayburn profits on questionable trading activities.
As disclosed in the Company’s recent Form 10 filing, RMHB previously filed an action against Donna Rayburn and Roy Meadows in the 44th Judicial District Court of Dallas County, Texas. Rocky Mountain High Brands, Inc. (RMHB) FKA Totally Hemp Crazy, Inc. V. Donna Rayburn and Roy J. Meadows, Case #DC-16-02131. The suit generally states that:
RMHB and Rayburn entered into a convertible promissory note dated February 2, 2015 for the original principal amount of $165,000 (with a $5,000 original issue discount). On August 29, 2015, RMHB paid to Rayburn $197,773.95, representing return of principal and interest earned during the life of the loan. On February 19, 2016, Rayburn issued an additional demand of interest and penalties totaling $99,487.92. Rayburn has charged $137,261.87 in interest and penalties on a $160,000 loan for one year and 17 days for an effective annual interest rate of 85.77%. As additional consideration for the note, RMHB was required to issue a warrant to Rayburn for 10,000,000 of common stock.
RMHB sued Rayburn for violation of Florida Usury Laws. RMHB seeks a cancellation of the note and additional monetary recovery in the total amount paid to Rayburn, plus additional recovery for all usurious interest charged. RMHB also seeks to void the warrant for 10,000,000 shares of common stock, which was issued under a voidable note. The amount which RMHB seeks from Rayburn is in excess of $300,000.
On March 14, 2016, RMHB amended the Rayburn suit to add Meadows as a party Defendant. RMHB has asserted usury claims in connection with $1,500,000 demand convertible note referenced below in the section pertaining to the Meadows Arbitration Claim. RMHB seeks unspecified monetary damages in connection with the Meadows Note, and further seeks cancellation of a warrant for 41,454,851 shares of common stock issued to Meadows in connection with the Meadows Note and cancellation of the Meadows Note. RMHB also seeks additional monetary damages from Meadows for his violations of SEC and other applicable securities laws in connection with his perpetration of a fraud on the public securities market and relating to the loss of value to both RMHB’s shareholders and to RMHB as a business entity. RMHB will vigorously contest all claims of Meadows and aggressively seek monetary damages against Meadows.
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During the six months ended December 31, 2015 the Company issued 68,220,350 shares of common stock for the conversion of $104,220 of convertible debt to Roy Meadows and Trinexus, Inc. (a corporation formed and controlled by Mr. Meadows to which he sold a portion of his convertible debt) prior to executing the exchange agreement to Series C preferred stock. These issuances gave Mr. Meadows in excess of 10% of the outstanding common stock, making him a Control Person.
In this lawsuit, the Company demands the forgiveness of any debt owed to Mr. Meadows, cancellation of all his warrants, the return of the Series C preferred shares held by Mr. Meadows, and the return of all interest and principal paid to Ms. Rayburn under her usurious note with the Company. Additionally, the Company seeks disgorgement of all profits earned by Mr. Meadows and Ms. Rayburn as a result of their usurious notes and profits on trading RMHB common stock. Total damages sought from Mr. Meadows and Ms. Rayburn may exceed $20 million.
Rocky Mountain High Brands believes the Shareholder Alert ignores this pre-existing litigation filed by the Company and mistakenly claims that the Law Office of AA. McClanahan Jr. “has commenced civil litigation.” Instead, the Company initiated proceedings in Seminole County, Florida, last week to put an end to Mr. Meadows’ unconscionable and commercially unreasonable efforts to “arbitrate” certain disputes against the Company at his home before a non-lawyer. In response, Mr. Meadows asserted his claims in Court, which the Company looks forward to disproving, and filed a Motion for Temporary Injunction to prevent further sales of the assets and stock of the Company. In the Motion, Meadows states, among other things, that RMHB sold 16,908,571 shares on April 18, 2016, which was the entire number of shares traded that day. Rocky Mountain High Brands states that neither RMHB nor its Officers or Directors sold one single share of RMHB stock that day. Although the Motion for a Temporary Injunction has not yet been ruled upon, the Company feels confident in its position and, therefore, is actively attempting to schedule a hearing on Mr. Meadows’ Motion to demonstrate to the Court that it is groundless and wholly without merit.
As alleged in its existing lawsuit, the Company will show that Mr. Meadows and his daughter, Donna Rayburn, have engaged in a pattern of personal enrichment at the expense of the Company and its shareholders.
About Rocky Mountain High Brands:
ROCKY MOUNTAIN HIGH BRANDS, INC., is a consumer goods company specializing in brand development of health conscious, hemp-infused food and beverage products. The Company currently markets a lineup of four naturally flavored hemp-infused beverages (Citrus Energy, Black Tea, Mango Energy and Lemonade) and a low calorie hemp-infused Coconut Lime Energy drink. In the near future, the Company will introduce hemp-infused food products that include a protein bar, an energy bar, and a chia crisp bar. Rocky Mountain High Brands plans to offer hemp-infused 2oz. energy shots and 2.5oz. coffee shots to its product line.
For Interested investors, our stock symbol is RMHB.
For ordering information please visit: www.RockyMountainHighBrands.com
For Rocky Mountain High Distribution Contact:
James Gang: (214) 763-0024
james@rockymountainhighbrands.com
Visit us at our Facebook page: https://www.facebook.com/rockymountainhighbrands?fref=nf
Visit us at Investors Hangout: http://investorshangout.com/Rocky-Mountain-Hi...MHB-69150/
Investors Hangout is the only authorized Investors blog page for Rocky Mountain High Brands, Inc.
Contact:
Contact:
Jerry Grisaffi, Founder
jerry@rockymountainhighbrands.com
Investor Relations:
The Eversull Group, Inc.
Jack Eversull, President
972-571-1624
214-469-2361 fax
jack@theeversullgroup.com
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