Imaging3 (OTC:IGNG) has completed its reverse merger with Los Angeles-based cannabis company Grapefruit Boulevard Investments, following a nearly $1.25 million settlement with Imaging3’s former bankruptcy counsel, according to an SEC filing.
Under the settlement, Burbank, Calif.-based Imaging3 will pay the law firm of Greenberg Glusker Fields Claman & Machtinger a total of $204,000 plus 6.35 million Grapefruit/IGNG common shares at $.164 per share. In April, Imaging3 settled a lawsuit it faced over claims that it breached note agreements and failed to deliver warrants to equity firms that had invested in it in 2017.
Under the reverse merger, Grapefruit owners Bradley Yourist and Daniel J. Yourist will own a combined 72.26% or nearly 262.5 million shares of the combined company. In June, Bradley Yourist became president, CEO and chairman of Imaging3 and Daniel Yourist was named chief operating officer and corporate secretary. John Hollister resigned as CEO, according to the SEC filing.
The filing also disclosed that on May 31, Imaging3 reached an agreement for Auctus Fund, LLC of Boston to invest $10.25 million in the company.
The reverse merger provides Imaging3 with funds to continue developing its Dominion 3D imaging technology while enabling privately held Grapefruit to go public without the time and expense of an initial public offering.
Founded in 1993, Imaging3 filed for Chapter 11 bankruptcy.
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