Legal Proceedings
−Removed: Bankruptcy Claim
−Removed: In 2019, MariMed Hemp, Inc.
−Removed: ("MMH"), a subsidiary of the Company, sold hemp seed inventory to GenCanna Global Inc.
−Removed: ("GenCanna"), recording a related party receivable of approximately $29 million, which was fully reserved at December 31, 2019.
−Removed: In early 2020, GenCanna entered into a Chapter 11 bankruptcy, leading to a liquidating plan that remains ongoing.
−Removed: In 2022, the Plan Administrator filed a complaint against MMH for alleged preferential transfers, which was settled in 2023 by reducing MMH's general unsecured claims to $15.5 million.
−Removed: In 2024, MMH received a liquidation distribution of $116,250.
−Removed: As of the date of this filing, there is insufficient information to determine the amount of further liquidation distributions, if any, that MMH may receive on account of its general unsecured claim.
+Added: There has been no material change to the status of the Company’s previously reported legal proceedings.
+Added: From time to time, the Company may become involved in litigation or regulatory proceedings in the ordinary course of its business, including litigation or regulatory proceedings that could become more material to the Company's business.
+Added: The cannabis industry is highly regulated, and many aspects of the Company's business involve substantial risk of liability.
+Added: Further, in past years, there has been an increasing incidence of litigation involving the cannabis industry including class action suits that generally seek substantial damages, and in some cases, punitive damages.
+Added: Compliance problems that are reported to federal/state regulatory authorities, by dissatisfied customers are often investigated by such regulatory bodies, and, if pursued by a regulatory body or customer, may rise to the level of litigation or disciplinary action.
+Added: Further, as a significant employer of full- and part-time employees, from time to time in the ordinary course of business, the Company faces claims and threatened claims from former employees alleging wrongful termination and other similar alleged wrongdoing, which the Company disputes and which are not material.
Mine Safety Disclosures
1 unchanged sentence
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.