RMHB will seek disgorgement of Meadow s and Rayburn Profits on Questionable Trading Activities
DALLAS, April 20, 2016 — Rocky Mountain High Brands, Inc. (OTC PINK:RMHB) announced today that the Company vehemently denies the false and inflammatory allegations asserted by the Shareholder Alert inappropriately released by the Law Office of A.A. McClanahan earlier today.
The Shareholder Alert identified a pending Motion for Temporary Injunction filed by Roy J. Meadows to prevent further sales of the assets and stock of the Company. In the Motion, Meadows states, among other things, that RHMB sold 16,908,571 shares on April 18, 2016, which was the entire number of shares traded that day. Neither RMHB nor its Officers or Directors sold one single share of RMHB stock that day. Although the Motion for a Temporary Injunction has not yet been ruled upon, RMHB is actively seeking an emergency hearing on that Motion to demonstrate to the Court that it is groundless and wholly without merit.
The Company is consulting with its legal teams at Allred Wilcox and Hartley, PLLC of Plano, Texas, and The Carr Law Firm in Orlando, Florida, and plans to pursue claims against Roy J. Meadows, Donna Rayburn and other related parties for as much as $25 million relating to allegations of potential fraud on the market, tortious interference with business, RICO, violations of Florida usury laws, and other claims and causes of action. The Company will show that Mr. Meadows, his daughter Donna Rayburn and possible related parties have engaged in a pattern of personal enrichment at the expense of shareholders and have conspired to harm the Company. The Company, in current pleadings, is demanding the forgiveness of any debt owed to Mr. Meadows, cancellation of all his warrants, the return of the Series C preferred shares held by Mr. Meadows, and the return of all interest and principal paid to Ms. Rayburn under her usurious note with the Company. Additionally, the Company will seek the disgorgement of all profits earned by Mr. Meadows and Ms. Rayburn as a result of their usurious notes and profits on trading RHMB common stock.
As disclosed in the Company’s recent Form 10 filing, RMHB previously filed an action against Donna Rayburn and Roy Meadows in the 44th Judicial District Court of Dallas County Texas. Rocky Mountain High Brands, Inc. (RMHB) FKA Totally Hemp Crazy, Inc. V. Donna Rayburn and Roy J. Meadows, Case #DC-16-02131. The suit generally states that:
RMHB and Rayburn entered into a convertible promissory note dated February 2, 2015 for the original principal amount of $165,000 (with a $5,000 original issue discount). On August 29. 2015, RMHB paid to Rayburn $197,773.95, representing return of principal and interested earned during the life of the loan. On February 19, 2016, Rayburn issued an additional demand of interest and penalties totaling $99,487.92. Rayburn has charged $137,261.87 in interest and penalties on a $160,000 loan for one year and 17 days for an effective annual interest rate of 85.77%. As additional consideration for the note, RMHB was required to issue a warrant to Rayburn for 10,000,000 of common stock.
RMHB sued Rayburn for violation of Florida Usury Laws. RMHB seeks a cancellation of the note and additional monetary recovery in the total amount paid to Rayburn, plus additional recovery for all usurious interest charged. RMHB also seeks to void the warrant for 10,000,000 shares of common stock, which was issued under a voidable note. The amount which RMHB seeks from Rayburn is in excess of $300,000.
On March 14, 2016, RMHB amended the Rayburn suit to add Meadows as a party Defendant. RMHB has asserted usury claims in connection with $1,500,000 demand convertible note referenced below in the section pertaining to the Meadows Arbitration Claim. RMHB seeks unspecified monetary damages in connection with the Meadows Note, and further seeks cancellation of a warrant for 41,454,851 share shares of common stock issued to Meadows in connection with the Meadows Note and cancellation of the Meadows Note. RMHB also seeks additional monetary damages from Meadows for his violations of SEC and other applicable securities laws in connection with his perpetration of a fraud on the public securities market and relating to the loss of value to both RMHB’s shareholders and to RMHB as a business entity. RMHB will vigorously contest all claims of Meadows and aggressively seek monetary damages against Meadows.
During the six months ended December 31, 2015 the Company issued 68,220,350 shares of common stock for the conversion of $104,220 of convertible debt to Roy Meadows and Trinexus, Inc. (a corporation formed and controlled by Mr. Meadows to which he sold a portion of his convertible debt) prior to executing the exchange agreement to Series C preferred stock. These issuances gave Mr. Meadows in excess of 10% of the outstanding common stock, making him a Control Person.
About Rocky Mountain High Brands:
ROCKY MOUNTAIN HIGH BRANDS, INC, is a consumer goods company specializing in brand development of health conscious, hemp-infused food and beverage products. The Company currently markets a lineup of four naturally flavored hemp-infused beverages (Citrus Energy, Black Tea, Mango Energy and Lemonade) and a low calorie hemp-infused Coconut Lime Energy drink. In the near future, the Company will introduce hemp-infused food products that include a protein bar, an energy bar, and a chia crisp bar. Rocky Mountain High Brands plans to offer hemp-infused 2oz. energy shots and 2.5oz. coffee shots to its product line.
For Interested investors, our stock symbol is RMHB.
For ordering information please visit: www.RockyMountainHighBrands.com
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James Gang: (214) 763-0024 email@example.com
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