Agritek Holdings Inc. (AGTK)

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Agritek Holdings, Inc. Provides Update and Announces Cancellation of Proposed Apex Extractions Acquisition

January 23, 2020 18:24 ET | Source: Agritek Holdings, Inc.

LOS ANGELES, CA, Jan. 23, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Agritek Holdings, Inc. (AGTK) www.AgritekHoldings.com, a fully integrated, active real estate investor for the cannabis sector and consultant for multiple cannabis brands, today announced that the Company has terminated its respective agreements to acquire Apex Extractions Inc. as a subsidiary as previously announced yesterday. There are no other payments by Agritek Holdings Inc. associated with terminating the agreement.

Earlier today, the Company was made aware of another announcement by a public Company stating the acquisition of Apex Extractions Inc., with Mr. Benson agreeing to act as its CEO. Agritek Holdings Inc. at no time had prior knowledge, was informed or was made aware by its acting CEO Mr. Benson, that there was any pending negotiations, agreement, or announcement being made regarding a second proposed acquisition of the Company by a separate party during the due diligence period. The Company has been in negotiations and due diligence with Mr. Benson as CEO and his Company, Apex Extractions, since September of 2019. All press announcements made by Agritek Holdings stated that the final closing was at all times subject to a final due diligence period and acceptance by both parties and majority shareholders.

"Agritek Holdings, Inc. has worked diligently to consummate this transaction since executing agreements as early as September of 2019, including binding Letters of Intent and Employment Agreements filed with the SEC on behalf of Scott Benson as the sole director and CEO of Agritek Holdings, Inc. We have been unable to come to definitive terms regarding financing the Apex distribution division requested by Mr. Benson to support debt on the books of the Company for a complete acquisition that would support the amount of equity and funding necessary to maintain the business and become a valuable asset for Agritek Holdings and its shareholders. The Company and majority shareholders were completely shocked and unaware that there were separate negotiations taking place and at today’s announcement of a proposed acquisition by a separate Company after spending much time and resources on this acquisition over the last several months,” says Interim CEO B. Michael Friedman.

Mr. Benson did not notify the Company of any such undisclosed negotiations or agreement. Prior to leaving the Company, Mr. Benson appointed B. Michael Friedman as Interim CEO and sole director via a Board Resolution. Yesterday’s press release by Agritek Holdings was specifically directed to explain the acquisition of Apex Extractions distribution division as a wholly owned subsidiary for distribution of multiple brands by Agritek Holdings including the new “Higher Society” brand owned by Agritek Holdings to be manufactured and distributed by Apex Solutions as previously announced by the Company and management.

“Accordingly, we have mutually agreed to terminate the Acquisition Agreement. While we are disappointed with this result, we greatly appreciate the hard work of the Agritek Holdings Advisory team, our legal advisors and majority shareholders along with our financial partners, as we all worked tirelessly to close this deal. We intend to move forward immediately on several alternative acquisition candidates and opportunities that we have under consideration,” stated a spokesperson for Agritek Holdings Inc.