−Removed: As more fully described in the section titled “Legal”
−Removed: under Note 11 to the Condensed Consolidated Financial Statements in this Form 10-Q, Michael Feinsod recently resigned as our Executive Chairman, claiming that his resignation was for “Good Reason”
−Removed: terms of his employment agreement.
−Removed: If it is ultimately determined that his resignation was, in fact, for “Good Reason”, rather
−Removed: than a voluntary act absent “Good Reason”, it could enable certain potential claims for entitlements under his employment
−Removed: agreement, as well as for the vesting of his unvested options and/or for the extension of the term within which he can exercise his options
−Removed: in the future.
−Removed: Having reviewed the matter, however, we do not believe that Mr.
−Removed: Feinsod’s resignation was for “Good Reason”.
−Removed: Accordingly, we believe that Mr.
−Removed: Feinsod’s resignation was voluntary, and that any such potential claims, if asserted, would be
−Removed: without foundation.
−Removed: Although the outcome of legal proceedings is subject to uncertainty, the Company will vigorously defend any future
−Removed: claims made by Mr.
−Removed: Feinsod alleging a “Good Reason”
−Removed: On August 18, 2020, two investors of certain promissory notes and common stock purchase warrants of General Cannabis Corp.
−Removed: (the “Company”),
−Removed: filed a lawsuit against the Company and its current Board of Directors seeking, principally, rescission rights and the associated return
−Removed: of their outstanding investment of $145,000.
−Removed: Based upon our preliminary evaluation of the matter, we have concluded that the Company remains
−Removed: in compliance with the terms of the notes that are not otherwise due until January 2021, and that the lawsuit has no merit.
−Removed: intends to vigorously defend the matter.
−Removed: Nevertheless, due to the early stage of the proceeding, we are unable to express an opinion as
−Removed: to the likely outcome of the matter.
+Added: LEGAL PROCEEDINGS
+Added: During the nine months ended September 30, 2020, two investors who participated in the private placement of certain Company notes and warrants asked for the return of their outstanding investments of $145,000, citing certain alleged breaches of the non-payment related terms of the investment documents.
+Added: On October 14, 2020, the Company reached a settlement with the investors and continues to service the remaining balance on the notes in a timely manner.
+Added: As of the date of this report, there have been no material changes to the Risk Factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019, as amended, and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020.
+Added: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
+Added: DEFAULTS UPON SENIOR SECURITIES
+Added: MINE SAFETY DISCLOSURES
+Added: Not applicable.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.