RedHawk Holdings Corp (fka SNDD)

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https://www.otcmarkets.com/filing/html?id=16642652&guid=3Ug-kq3bRvfyiih

RedHawk Holdings Corp. (“RedHawk” or the “Company”), a diversified holding company engaged primarily in the sale and distribution of medical devices and certain types of personal protection equipment, announced today that RedHawk Medical Products & Services, LLC (“RedHawk Medical”), a wholly-owned subsidiary of the Company, was awarded, through binding arbitration, $44,950,000, plus attorney fees, arbitration costs, and judicial interest.

On June 22, 2021, RedHawk Medical entered into a $950,000,000 contract (the “Contract”) with N-95 Shield, LLC, an Arizona-based medical supply distribution company (the “Buyer”) and member of Nevada-based Coastal Group Partners, LLC, for RedHawk Medical to sell to the Buyer certain medical products offered by RedHawk Medical. The Buyer failed to perform under the terms of the Contract and RedHawk Medical’s attempts to amicably resolve the dispute with the Buyer were unsuccessful.

On January 6, 2022, RedHawk Medical issued to the Buyer a Notice of Default (“Default”) wherein RedHawk notified the Buyer that RedHawk Medical (i) believed the Buyer was in breach of the Contract; and (ii) if the Buyer failed to cure the Default within the timeline set forth in the Contract, RedHawk Medical would pursue its available remedies pursuant to the terms of the Contract.

The Buyer failed to cure the Default.

Accordingly, pursuant to the terms of the Contract, RedHawk Medical initiated binding arbitration proceedings on May 21, 2022 through Judicial Arbitration and Mediation Services, Inc. (“JAMS”).

On February 22, 2023, a binding arbitration hearing was held in Lafayette, Louisiana.

On May 1, 2023, RedHawk Medical was awarded a monetary judgment (“Judgment”) in the amount of $44,950,000, plus, attorney fees and arbitration costs in the amount of approximately $69,000, and judicial interest from June 22, 2021 until paid. As of May 1, 2023, accrued judicial interest totaled approximately $3,400,000.

The Judgment is not subject to appeal.

The Company said it will recognize the net income from the Judgment in its financial statements when the proceeds from the Judgment are collected by RedHawk Medical.