PAYMEON, INC. (OTCMKTS:PAYM) Files An 8-K Other EventsItem 8.01. Other Events.
On December 11, 2016, Rockstar Acquisitions, LLC d/b/a Basalt America (“Rockstar”) entered into a License Agreement with Raw Energy Materials Corp (“RAW”) for exclusive rights for use of certain intellectual property associated with the production of certain concrete reinforcement products for the construction industry. The License Agreement provided for Rockstar to have exclusive rights for use of the intellectual property in conjunction with product sales for the State of Florida, the Caribbean Islands (excluding Cuba), and Peru (“Licensed Territory”). Subsequently, the parties entered into amendments to the License Agreement whereby, among other things, the Licensed Territory was expanded to include the continental United States in exchange for an option fee and certain other obligations. On February 21, 2017, Rockstar became a wholly-owned subsidiary of Paymeon, Inc. (the “Company).
On April 18, 2018, Rockstar and the Company received a letter from counsel representing RAW providing formal notice that Rockstar and the Company had breached certain provisions of the License Agreement, as amended, and that RAW was immediately terminating all agreements and amendments in respect thereof. The Company does not believe that it or Rockstar is in breach, and, in response, notified RAW of various claims against it. The parties thereafter engaged in discussions to resolve their dispute.
On October 25, 2018, the Company was informed that RAW filed an action for declaratory relief in Broward County, Florida, in the Seventeenth Judicial Circuit Court. The action asks the court to determine, among other things, whether the License Agreement, as amended, has been terminated and also seeks damages for breach. In addition, RAW has filed a motion for summary judgment for failure to answer.
On October 29, 2018, the Company engaged outside counsel in Broward County to respond to the action, as well as initiate a countersuit in Broward County, Florida, seeking approximately $1.1 million in restitution for amounts paid to RAW Materials Corp for equipment and inventory that was never delivered.
The Company believes that the claims and demands made by RAW are without merit and intends to defend the Company and Rockstar vigorously.
About PAYMEON, INC. (OTCMKTS:PAYM)
PayMeOn, Inc. (PayMeOn), formerly MMAX Media, Inc., owns and operates products that are focused on monetizing consumer influence through social, local and mobile marketing. The Company is engaged in the sale of electric bicycles, hoverboards, and other related products and accessories, at its Website, www.irideelectric.com, and at its retail location located in Fort Lauderdale, Florida. PayMeOn holds a stake in Prodeco Technologies, LLC, which is a researcher, developer, marketer and manufacturer of electric bicycles. The Company sells ProdecoTech electric bicycles online through its Website, www.irideelectric.com, under a non-exclusive dealer agreement. In addition to ProdecoTech electric bicycles, the Company also sells electric bicycles made by other manufacturers. PayMeOn holds an interest in HLM Paymeon, Inc. and Paymeon Brands, Inc. Paymeon Brands, Inc. is formed to develop, market, manage and monetize lifestyle brands and products.
