Pineapple Consolidated, Inc. Comments on Lawsuit by 2 Chainz

Rhea-AI Summary

Pineapple Consolidated, Inc. (PCI), a 25% minority-owned asset of Pineapple Express Cannabis Company (OTC: PNXP), faces a lawsuit from rapper 2 Chainz over his investment in PCI's Hollywood cannabis dispensary. The lawsuit comes after the dispensary's temporary closure in late July and throughout August. PCI is working to resolve the issue through private arbitration, as stipulated in their agreement with 2 Chainz's investment group.

The temporary closure is due to a court-ordered restructuring of ownership, involving the removal of a social equity partner. This precautionary measure ensures compliance with local cannabis regulations during the ownership transition. The Hollywood dispensary is set to relaunch on September 1st, fully compliant with local and state laws.

Positive

• PCI is actively working to resolve the lawsuit through private arbitration
• The company secured a court order to remove a social equity partner, potentially improving operations
• The Hollywood dispensary is set to relaunch on September 1st, fully compliant with regulations

Negative

• Celebrity investor 2 Chainz has initiated a lawsuit against PCI
• The Hollywood dispensary is temporarily closed for the entire month of August
• Negative media coverage due to the lawsuit and dispensary closure

Company recently named in a lawsuit by famous rapper in connection with a dispensary investment

LOS ANGELES, CA, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Pineapple Consolidated, Inc., (the “Company” or “PCI”) a 25% minority owned asset of Pineapple Express Cannabis Company (OTC: PNXP), a publicly traded company, today disclosed that a celebrity investor in PCI’s Hollywood cannabis dispensary, 2 Chainz, has initiated a legal action against PCI regarding his investment. The lawsuit alleges dissatisfaction with his investment which PCI believes was heightened after seeing the dispensary temporarily closed in the last week of July and its planned closure for the entirety of August. The situation has attracted some media coverage. A thoughtful and balanced perspective on the matter can be found by clicking here.

Company management confirms they are actively working to resolve this issue in private arbitration, which is allowed for in the agreement they signed with 2 Chainz’s investment group. PCI is committed to resolving the matter discreetly and amicably, in full adherence to the contract terms.

Company management also confirmed that the Pineapple Express Hollywood store is temporarily closed during the month of August due to a restructuring of ownership involving removal of a social equity partner, which PCI secured by court order. This precautionary closure was implemented to guarantee strict adhereance to local cannabis regulations in finalizing the ownership transition. The Hollywood dispensary will be relaunching on September 1^st, fully compliant with local and state laws.

“While it's unfortunate that one of our celebrity investors is publicly expressing dissatisfaction, and we do not subscribe to the idea that ‘all press is good press’, we view this as an opportunity to reframe the narrative and transform this challenge into a positive outcome,” said PCI Director, Matthew Feinstein. “The temporary closure of our Hollywood dispensary that likely exacerbated the issue with our celebrity investor was a proactive step taken to ensure compliance with local regulations. We adopted this conservative approach to protect our license during the transition to a more supportive social equity partner. We see September 1^st as a pivotal fresh start for Pineapple Express Hollywood.”

About Pineapple Consolidated, Inc.

Pineapple Consolidated. Inc. is based in Los Angeles, California. The Company is engaged in legal cannabis retail under the brand name of Pineapple Express, Pineapple Consolidated Inc. (pineappleconsolidated.com), which owns and manages retail cannabis ventures under the Pineapple Express name and via www.PineappleExpress.com. Pineapple Consolidated seeks to become the leading portfolio management company in the U.S. cannabis industry. Pineapple Express is working to rapidly increase its footprint throughout California and looking to scale into underdeveloped markets. 

Forward-Looking Statements: 

Company Contact:
Matthew Feinstein,
Managing Director & Investor Relations
Pineapple Consolidated, Inc.
Office: 888-245-5703

FAQ

Why is rapper 2 Chainz suing Pineapple Consolidated, Inc. (PNXP)?

2 Chainz is suing Pineapple Consolidated, Inc. due to dissatisfaction with his investment in PCI's Hollywood cannabis dispensary, exacerbated by the dispensary's temporary closure in late July and throughout August 2024.

When will the Pineapple Express Hollywood dispensary reopen?

The Pineapple Express Hollywood dispensary is scheduled to relaunch on September 1, 2024, after completing a restructuring of ownership and ensuring compliance with local and state regulations.

What is the reason for the temporary closure of Pineapple Express Hollywood dispensary in August 2024?

The dispensary is temporarily closed due to a court-ordered restructuring of ownership, involving the removal of a social equity partner. This closure ensures compliance with local cannabis regulations during the ownership transition.

How is Pineapple Consolidated, Inc. (PNXP) addressing the lawsuit from 2 Chainz?

Pineapple Consolidated, Inc. is actively working to resolve the issue with 2 Chainz through private arbitration, as allowed for in the agreement signed with the rapper's investment group.