Item 1.01 Entry into a Material Definitive Agreement.
As previously reported by Driven Deliveries, Inc. (the "Company") in its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, Carla
Baumgartner, Chris Haas, and Eric Steele ("Plaintiff") filed a Complaint against
the Company , Brian Hayek and Christian Schenk, individually , on November 26,
2019 in San Diego County Superior Court, Case No. 37-2019-00063208 (the
"Action"). On July 13, 2020, the Company, Brian Hayek and Christian Schenk and
the Plaintiffs entered into a Settlement Agreement, pursuant to which the Action
was settled. Pursuant to the Settlement Agreement the Company will issue the
Plaintiffs 5,000,000 shares of the Company's restricted common stock and
Warrants previously issued to the Plaintiffs shall be cancelled. In addition the
Company agreed to pay the Plaintiffs as follows:
1) One Hundred Seventy-Five Thousand Dollars ($175,000) immediately upon the
Effective Date (July 13, 2020);
2) Eighty-Five Thousand Dollars ($85,000) within fourteen (14) days following
July 13, 2020;
3) One Hundred Seventy-Five Thousand Dollars ($175,000) within thirty (30) days
following July 13, 2020the Effective Date;
4) Seventy-Five Thousand Dollars ($75,000) within sixty (60) days following July
13, 2020; and
5) Three Hundred Thousand Dollars ($300,000) on or before July 1, 2021.
Payments shall be net of all claimed damages, attorney's fees, and costs.
Payments
Pursuant to the Settlement Agreement, the Plaintiff's agreed to actively
facilitate the ability for the Company to continue to use the California Bureau
of Cannabis Control, License Number C-9-0000185. The Settlement Agreement
contains standard mutual releases.
The foregoing description of the Settlement Agreement does not purport to be
complete and is qualified in its entirety by reference to the complete text of
the Settlement Agreement filed as Exhibit 10.1 hereto, which is incorporated
herein by reference.
2.02 Results of Operations and Financial Condition.
On July 1, 2020 Driven Deliveries, Inc. (the "Company") issued a press release
announcing preliminary revenue results and other financial information for the
quarter ended June 30, 2020. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
The information in this Current Report, including the exhibits hereto, is being
furnished and shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of
1933, as amended. The information contained in this Item 2.02 and in the
accompanying Exhibit 99.1 shall not be incorporated by reference into any
registration statement or other document filed by the Company with the
Securities and Exchange Commission, whether made before or after the date of
this report, regardless of any general incorporation language in such filing (or
any reference to this Current Report on Form 8-K generally), except as shall be
expressly set forth by specific reference in such filing.
Item 9.01 Financial statements and Exhibits
(d) Exhibits.
Exhibit
Number Description
10.1 Settlement Agreement
99.1 Press Release, dated July 22, 2020
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