We referred to the lawsuit last week and you can read all about it below at the MJ Biz report.
Stan & Oliver would have loved it…
Here’s what Coastal say.
Plaintiff And Defendants Agree To Sell The Company In or around April 2021, Mr. Bierman, at the behest of Coastal, worked with a third-party consultant, MarVista Partners (“MVP”) to shop Coastal to potential buyers. Id. ¶ 8. At least three offers were obtained. Id. The best offer was for $55 million. Id. Coastal entered into a term sheet with the prospective buyer, but the buyer cancelled the transaction after a period of due diligence. Id. During a Coastal Board of Managers meeting on May 3, 2021, Plaintiff through Mr. Bierman vehemently expressed his opinion that Coastal was days away from failing to remain an ongoing concern. Id. ¶ 9. He indicated it was necessary to go back to all the potential buyers from the first round and be willing to reduce Coastal’s asking price. Id. The Board agreed, and Mr. Bierman worked with MVP to secure new offers. Id. Plaintiff Finds, Negotiates And Recommends The Current Offer A new offer was secured by Mr. Bierman and MVP from a buyer to purchase Coastal for even more, not less; specifically, for $56.2 million (the “Current Offer”). Id. ¶ 10. Only Mr. Bierman and MVP negotiated the terms of the Current Offer on behalf of Coastal, not any of the Defendants. Id. During a Coastal board meeting on June 22, 2021, Plaintiff presented the term sheet affiliated with the Current Offer to the Board and called it a “great offer.” Id. ¶ 11. Mr. Bierman, as a manager of Coastal, made the motion to accept the Current Offer and move forward with the transaction; his motion passed unanimously. Id. Andrew Modlin, Plaintiff LMAJ’s co-owner, indicated that two other parties were involved in working towards purchase offers of Coastal, but the Current Offer was the best option available. Id. On the strength of Plaintiff’s recommendation, Coastal accepted the terms of the Current Offer and began working with the buyer towards drafting the appropriate documents to effectuate the transaction.
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