Item 1.02. TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT.

On January 21, 2021, the Company received a Notice of Termination (the "Notice"), effective immediately, from Acres Cultivation, LLC ("Acres") on the following three (3) agreements (collectively, herein the "Cooperation Agreement"):





  1) The Cultivation and Sales Agreement entered into by and between MJNE and
     Acres, dated as of January 1, 2019 (the "Cultivation and Sales Agreement" or
     "CSA"), pursuant to Sections 5.3, and 16.20 (cross-default);



  2) The Consulting Agreement, by and between Acres and MJNE, made as of January
     1, 2019 (the "Consulting Agreement"), pursuant to Sections 10 and 11.10
     (cross-default); and

  3) The Equipment Lease Agreement between Acres and MJNE, dated as of January 1,
     2019 (the "Equipment Lease Agreement"), pursuant to Sections 8(ii), 8(iv),
     and 29 (cross-default).

Within the Notice, Acres makes claims that the Company and its subsidiaries failed to perform in accordance with the terms and conditions of the Cooperation Agreement in a number of ways, as follows, and among others:

1. The Company's failure to comply with applicable law;

2. The Company's ongoing compliance violations and failures or inability to cure;

3. The Company's failures under CSA sections 5.3(c) and 6.1(b);

4. The Company's breaches related to sales;

5. The Company's breach by failure to discharge Mechanic's lien; and

6. The Company's breach by failure to obtain required insurance.

The Company and Acres (the "Parties") are in active discussions in an effort to remedy the alleged breaches noted within the Notice. There is no guarantee that the Parties will reach a resolution satisfactory to the Company.

Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS.





(d) Exhibits.




Exhibit
No.                         Description
10.1        Notice of Termination dated January 21, 2021




2

© Edgar Online, source Glimpses