Core Viewpoint - C21 Investments Inc. has reached a settlement agreement regarding litigation involving Proudest Monkey Holdings, resolving claims related to contract and employment disputes, and agreeing to a cash payment and share issuance to the plaintiffs [1][4][5]. Group 1: Settlement Agreement Details - The settlement includes a total cash payment of US$2,400,000, with an initial payment of US$500,000 due by September 12, 2025, followed by monthly payments of US$100,000 over 19 months [4]. - The company will also issue 555,793 common shares to certain vendors as part of the settlement [4]. - The settlement resolves all claims in the Oregon and British Columbia actions, with no admission of liability from any party involved [4][6]. Group 2: Background of the Litigation - The litigation arose from allegations made by two vendors of Proudest Monkey regarding breaches of the EFF Agreement, which was established when C21 acquired Eco Firma Farms LLC [2][3]. - The company had previously notified the vendors of alleged breaches, leading to the initiation of the British Columbia action [3]. Group 3: Financial Implications - The settlement will offset cash liabilities related to the settlement amount against the extinguishment of $1,156,259 in convertible notes and $612,500 in accounts payable related to the litigation [5].