LOS ANGELES, March 21, 2017 /PRNewswire/ -- PINEAPPLE EXPRESS, INC. (OTC Grey: PNPL) (the "Company"), a publicly traded company that offers consulting, technology, investments, turn-key property rentals and branding concepts to businesses in the legal cannabis industry, announced today that recent media reports referencing it had been sued are incorrect.
Company Executives did confirm that on October 12th, 2016, a Company subsidiary’s rights under a purchase contract with United Pentecostal Church of Desert Hot Springs (UPCDHS) to purchase 3.78 acres and existing building structures was terminated by UPCDHS. The subsidiary was attempting to resolve the matter in an amicable fashion with UPCDHS as well as the ultimate acquirer of the parcel that had gained the benefit of the development costs expended by the subsidiary in improving the value of the parcel as well as ownership of the conditional use permit tied to the real estate. As a result of the dispute, the subsidiary was sold by Pineapple Express Inc. and the new owner has stated that they will seek recourse with UPCDHS as well as the purchaser of the parcel in order to resolve any debts to vendors that went unpaid in the aftermath.
“Our former subsidiary paid over $800,000 in development costs prior to the parcel being sold to a 3rd party by UPCDHS, without our knowledge. To that point, the subsidiary had also accumulated upwards of $700,000 in unpaid development costs for the parcel. A dispute exists about whether the new owner of the parcel and ultimate beneficiary of the development costs should pay for them,” stated Matthew Feinstein, CEO at Pineapple Express. “Pineapple Express has identified a more cost effective alternative so that the Company’s contracted clients and future tenants can take possession of rental spaces within the next few months. The Company is focused on its future.”
Company Executives also clarified that a former Co-Founder has successfully resolved an issue with the SEC concerning a prior venture.
Feinstein added, "A former co-founder with the company recently settled matters with the SEC concerning a prior venture. The company confirms he is no longer a shareholder of Pineapple Express. We wish him well in his future endeavors."