Diego Pellicer Worldwide, Inc. (OTCMKTS:DPWW) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On September 7, 2018, the Board of Directors of Diego Pellicer Worldwide, Inc. (“Registrant”) ratified, approved and confirmed certain amendments to employment agreements to permit certain officers to participate in a contractual relationship with businesses in the same line of business as the Registrant provided that such officers disclose all of the facts and circumstances surrounding the proposed relationship and provided further, that the proposed relationship is not a corporate opportunity available to Registrant and is approved by the non-interested directors of the Registrant.
Registrant’s CEO, Ron Throgmartin’s employment agreement, dated September 17, 2014, was so amended based upon the following facts: Mr. Throgmartin has not received his cash compensation under his employment contract for approximately four years, being paid in restricted stock, a promissory note and approximately $21,000 in annual cash payments and, therefore, that the Company is in potential breach of this agreement; that Mr. Throgmartin, was invited to participate as a principal in an application by another business for a New Jersey marijuana medical license; that Mr. Throgmartin disclosed to the Registrant’s board his potential involvement in this other business, including his potential membership interest; that Mr. Throgmartin disclosed to the board his plan to obtain an agreement with this business for Registrant’s subsidiary, Diego Pellicer Marketing Company, to manage the operations of this other business for compensation; that Throgmartin disclosed his attempts to secure financing from Registrant’s key investors who declined to participate or fund either a joint effort between Registrant and this other business or a competing application for a New Jersey medical marijuana license; that, since Registrant could not source the funding for this proposed joint effort with the other business or the approximate $6 million or less in funding to launch a competing application for a New Jersey medical marijuana license that the non-interested Board member determined that this was not a corporate opportunity for the Registrant.
In connection with the possibility that Diego Pellicer Management Company could obtain an agreement with this other business to manage its operations, the Board determined to ratify, approve and confirm similar amendments to the employment agreements of Chris Strachan, the Registrant’s CFO, and Nello Gonfiantini, Registrant’s VP- Strategy, to permit them to participate in the other business’s application for a New Jersey medical marijuana license so that they could also be eligible to participate, if necessary, with this other business.
(a) Exhibits: None.
About Diego Pellicer Worldwide, Inc. (OTCMKTS:DPWW)
Diego Pellicer Worldwide, Inc., formerly Type 1 Media, Inc., is a development-stage company. The Company is a real estate and a consumer retail development company. The Company is focused on developing its Diego Pellicer marijuana brand along with both cannabis and non-cannabis products. The Company’s initial focus is to acquire and develop legally compliant real estate locations for the purposes of leasing them to state licensed companies in the cannabis industry. The Company leases real estate to licensed marijuana operators, including but not limited to, providing complete growing space, processing space, recreational and medical retail sales space and related facilities to licensed marijuana growers, processors, dispensary and recreational store operators. Additionally, the Company plans to explore ancillary opportunities in the regulated marijuana industry, as well as offering for wholesale distribution branded non-marijuana clothing and accessories.