Item 3. Legal Proceedings
Item 3. Legal Proceedings.
On June 17, 2021, Organicell received a subpoena
dated June 14, 2021, from the Atlanta Regional Office of the SEC requiring the production of certain documents and communications in connection
with the treatment and results of various COVID-19 patients, as discussed in the Company’s Current Reports on Form 8-K filed with
the SEC during the period from May 27, 2020 through May 11, 2021. The Company is fully cooperating with the SEC’s investigation
and believes that it will be able to provide all of the information requested by the SEC. The Company can make no assurances as to the
time or resources that will need to be devoted to this investigation or its final outcome, or the impact, if any, of this investigation
or any proceedings on the Company’s current business, financial condition, results of operations, cash flows, or the Company’s
future operations.
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On August 17, 2021, the Company was served
with a summons and complaint by LAE International Consulting, LLC (“LAE”), in the case styled LAE International Consulting,
LLC v. Organicell Regenerative Medicine, Inc. et al., Case No. 2021-018461-CA-01 (In the Circuit Court of the 11th Judicial Circuit
in and for Miami Dade County, Florida) (the “Lawsuit”). Albert Mitrani, Mari Mitrani and Ian Bothwell (the “Individual
Defendants”) are also named as defendants in the Lawsuit. In the Lawsuit, LAE alleges breach of contract, unjust enrichment, violation
of Florida’s Unfair and Deceptive Trade Practices Act, breach of obligation of good faith and fair dealing, negligent misrepresentation
and fraudulent misrepresentation in connection with a prior consulting agreement entered into between the Company and LAE. Prior
to institution of the Lawsuit, the Company terminated the consulting agreement. In the Lawsuit, LAE is seeking judgment for
compensatory damages, interest, costs, and attorneys’ fees. The Company denies any wrongdoing and responsibility in connection
with the Lawsuit, and believes it has strong defenses to the Lawsuit. Although the Lawsuit is in its early stages, the Company and the
Individual Defendants have filed motions to dismiss due to, among other things, (a) that the consulting agreement expressly negates LAE’s
claims; (b) there was, in fact, no breach of contract by the Company; (c) LAE provides no grounds, and cannot provide any grounds, for
its barebones claims that the Company and Individual Defendants induced LAE into a contract that they did not intend to perform; (d) many
of the claims against the Individual Defendants do not exist as a matter of law; and (e) technical deficiencies in the complaint itself
The Company is awaiting a ruling on the motion, and the Individual Defendants’ motion to dismiss will be set for hearing in due
course.
In addition to the foregoing, from time to time,
we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject
to inherent uncertainties, and an adverse result in any such matter may harm our business.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II