Final Impediment to Formal Closing of Grapefruit’s Reverse Acquisition of IGNG Removed
Burbank, CA, July 08, 2019 (GLOBE NEWSWIRE) -- (OTCQB:IGNG) Imaging3, Inc./Grapefruit Boulevard Investments, Inc. (“Grapefruit”) a Los Angeles based cannabis company today announces that it has reached and executed a Settlement Agreement (the “Agreement”) with its former bankruptcy counsel and largest trade creditor Greenberg Glusker Fields Claman & Machtinger LLP (“GG”). The Agreement calls for IGNG/Grapefruit to liquidate the outstanding GG balance of $1,245,380.00 (the “Balance”) by the payment of $204,000 to GG in three payments of $68,000.00 to be made by no later than November 30, 2019 and the immediate issuance of 6,351,126 IGNG common shares (the “Settlement Shares”) at an agreed value of $.164 per share to GG. The Settlement Shares will be the subject of a Section 3(a)(10) of the Securities Act of 1933 action (the “3(a)(10) Action”) to be expeditiously filed by GG, by which the Court hearing the 3(a)(10) action will be asked to approve the Agreement and after such approval the Settlement Shares shall be immediate eligible for resale in the public markets. The Agreement calls for the issuance of “Make Whole” shares to GG, if after the sale of all of the Settlement Shares by GG in the public markets it fails to realize sufficient funds to liquidate the Balance. New IGNG CEO Bradley J. Yourist commented “Once again we have achieved a positive conclusion to a significantly thorny component of Grapefruit’s reverse acquisition of IGNG. This is the most gratifying, however, because it ends the time and resource consuming acquisition documentation process. We expect to complete all formal steps to finalize the acquisition this week. With the acquisition buttoned up, the IGNG/Grapefruit team will be able to proceed vigorously with prosecution of Grapefruit’s business plan. Furthermore, in the very near future the Company will take those steps necessary to change IGNG’s name to Grapefruit, Inc. and to obtain a more appropriate trading symbol from OTC markets. We have also made significant progress with our Form S-1 registration statement this week and believe we will file it in July. This is, of course, very significant as we will receive our next tranche of $1,400,000.00 from our investor when we file the S-1.
About Imaging3, Inc.
Imaging3, Inc., founded in 1993, has developed a patented medical imaging technology, called the Dominion SmartScan™, that produces 3D X-ray images, effectively in real time. The SmartScan technology has the potential to allow healthcare professionals to perform diagnostic and therapeutic procedures more quickly and accurately, which may result in higher throughput for the clinicians and fewer safety risks for patients. Imaging3’s technology exposes patients to less harmful radiation than current equivalent imaging technologies such as CT scans. The company believes this will allow scans to be used in many settings where scanning is currently limited by concerns about radiation exposure. The technology also notably allows for reasonably convenient portability, easier installation and use-readiness, and a significantly reduced cost burden suitable for novel settings and for healthcare systems across varied global settings. Imaging3 plans to submit a 510(k) application to FDA during 2019 and or 2020 to gain marketing authorization for initial applications for the SmartScan technology. Visit the company’s website at http://www.imaging3.com for detailed information about the company’s technology.
Grapefruit is based in Westwood, Los Angeles, California. Grapefruit holds California licenses to both manufacture and distribute cannabis products and is fully compliant with all applicable laws and regulations to operate such business. Grapefruit has its cannabinoid extraction facility located in the Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, California located on the extension of North Canyon Rd., approximately 10 miles north of the center of Palm Springs. Grapefruit obtained its California cannabis licenses in January of 2018 and commenced distribution of cannabis products in 2018. Grapefruit’s goal is to become a seed to sale vertically integrated fully compliant cannabis and CBD product Company. To obtain further information on Grapefruit’s California cannabis licenses and its business plan and operations, please visit its website at https://grapefruitblvd.com/
Safe Harbor Statement
Imaging3 cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words “anticipate,” “believe,” “estimate,” “may” “intend,” “expect” and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in the Imaging3’s business, including, without limitation: the company may not ever obtain FDA approval for any of its devices; the company may not be able to secure the funds necessary to support its product development plans; and the company may not ever achieve the market success to sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger imaging companies, technological obsolescence, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Imaging3 and the risk factors that may affect the realization of forward-looking statements is set forth in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and its Quarterly Report on Form 10-Q. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Imaging3 undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.