On April 20, 2023, VPR Brands, LP (the "Company") entered into a Litigation
Resolution Agreement and Distributor License (the "Agreement") by and between
the Company and Safa Goods LLC ("Safa"). The Company previously filed (i) a
lawsuit in the United States District Court for the Southern District of Florida
(Case No. 9:22-cv-81576-AMC) alleging trademark and patent infringement against
Shenzhen Weiboli Technology Co. Ltd. ("Weiboli") and its U.S. master
distributors of certain e-cigarette products, and (ii) related cases in the
Southern District of Florida against the same defendants, affiliates of
defendants, or other distributors of ELFBAR products and products branded using
the Company's registered trademark ELF (collectively, the "Actions"). Pursuant
to the terms of the Agreement, the Company and Safa agreed to settle the
Actions. Safa agreed to pay the Company, in 18 equal monthly installments,
$5,300,197 based on the defendants' sales of infringing products and an
additional $50,000 for the Company's attorneys' fees. The Company also granted
to Safa a three-year license to the Company's registered trademark ELF and its
U.S. patent number 8,205622 in the U.S. in exchange for payment of a royalty as
follows: (i) 9% until Weiboli and the Weiboli affiliates resolve litigation with
the Company, if existing or future licensed products is/was purchased by Safa
from Weiboli; (ii) 4.5% following resolution of the Weiboli litigation; and
(iii) 4.5% if purchased from ELF Brand LLC or other Company appointed suppliers
to be determined.
VPR Brands, LP is a technology company and an intellectual property (IP) holding company. The Company is engaged in various monetization strategies of its United States patents covering electronic cigarette, vaporizer technologies, and related accessories. It designs, develops, markets, and distributes products oriented towards the cannabis markets, including the ELF and HONEYSTICK brand of vaporizers and DISSIM Lighters. It has several trademarks (ELF, HONEYSTICK, PHANTOM, RIPPER, VPOD, VAPOR X) for licensing activities. The Company is also engaged in product development for the vapor or vaping market, including e-liquids. Electronic cigarettes are electronic devices, which deliver nicotine through atomization, or vaping of e-liquids and without smoke, and other chemicals constituents typically found in traditional tobacco burning cigarette products.
VPR BRANDS, LP 