Rocky Mountain High Brands, Inc. has entered into a consulting agreement with Eagle Processing & Distribution.
Under the agreement, Eagle has agreed to assume responsibility for all company operations on a best-efforts basis for an initial term of three years. Eagle’s responsibilities will include financing or assisting in arranging for financing of all production, purchase orders and inventory; sales and distribution; marketing; logistics and order fulfillment; production of all of the company’s products; inventory management and coordination; customer service; risk management, and other matters as set forth in the agreement.
As compensation, Eagle was issued 50,000,000 shares of Rocky Mountain High Brands’ Rule 144 common stock for services to be rendered during the initial eight months of the agreement. Compensation for the remainder of the term of the agreement will be negotiated and agreed upon prior to the expiration of the initial eight months.
The agreement will allow Rocky Mountain High Brands to eliminate or reduce certain overhead costs relating to wages, contractors, insurance costs, rent, storage and logistics, as these costs will be borne by Eagle under the agreement. The company is still assessing the dollar impact of these savings.
“By engaging Eagle to oversee our entire operation, RMHB will have immediate access to Eagle’s management expertise, technical expertise, co-packing capabilities, supply chain, and sales and distribution channels,” said Michael Welch, president and CEO of Rocky Mountain High Brands. “The company is now pursuing opportunities that it would not have been able to pursue prior to our relationship with Eagle. The combination of RMHB’s strong product branding, coupled with the talent brought forth by Eagle, will revitalize our team, lower our overhead and help build the market value of RMHB.”
A Form 8-K has been filed with the Securities and Exchange Commission.
Eagle Processing & Distribution is based in an Opportunity Zone in North Dakota. Its 100,000-sq.-ft. manufacturing campus has two separate facilities. Eagle recently acquired control of Rocky Mountain’s DFW co-packing facility for beverages, which will be operated as a new subsidiary of Eagle.