Derivative Actions – Notice of Change of Date for Final Fairness Hearing and Stipulation of Settlement Agreement in Merritts Derivative Action

As previously reported in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, as well as on Form 8-K filed with the Securities and Exchange Commission on February 3, 2016, on October 16, 2015, solely to avoid the costs, risks, and uncertainties inherent in litigation, Notis Global, Inc. (p/k/a Medbox, Inc.) (the “Company”) and the individual defendants entered into a Stipulation and Agreement of Settlement (the “Stipulation”) in the following previously disclosed stockholder derivative lawsuits: (1) Mike Jones v. Guy Marsala, et al., in the U.S. District Court for Central District of California; (2) Jennifer Scheffer v. P. Vincent Mehdizadeh, et al., in the Eighth Judicial District Court of Nevada; (3) Kimberly Y. Freeman v. Pejman Vincent Mehdizadeh, et al., in the Eighth Judicial District Court of Nevada; (4) Tyler Gray v. Pejman Vincent Mehdizadeh, et al., in the U.S. District Court for the District of Nevada; (5) Robert J. Calabrese v. Ned L. Siegel, et al., in the U.S. District Court for the District of Nevada; (6) Patricia des Groseilliers v. Pejman Vincent Mehdizadeh, et al., in the U.S. District Court for the District of Nevada; (7) Michael A. Glinter v. Pejman Vincent Mehdizadeh, et al., in the Superior Court of the State of California for the County of Los Angeles (collectively, the “Derivative Actions”) brought against certain current and former officers and directors (as previously disclosed). The settlement is dependent upon final approval by the United States District Court for the Central District of California (the “Court”).

     On October 27, 2016, Richard Merritts (“Merritts”) filed a stockholder derivative lawsuit in the Superior Court of the State of California for the County of Los Angeles (the “Merritts Action”).  On April 22, 2016, the Court issued an Order granting Merritts’ Motion to Intervene in the lawsuit titled Mike Jones v. Guy Marsala, et al., in order to conduct limited discovery. The Order granting the Motion to Intervene also continued the final fairness hearing in the Derivative Actions, previously scheduled for May 16, 2016, at 1:30 p.m., to August 15, 2016, at 1:30 p.m.

     On August 2, 2016, the Court issued another Order continuing the final fairness hearing in the Derivative Actions, previously scheduled for August 15, 2016, at 1:30 p.m., to September 22, 2016, at 1:30 p.m. The Court also ordered that opening briefs and supporting documents in support of final approval of the settlement shall be filed on or before August 15, 2016, that all objections of Notis Global shareholders to the settlement shall be filed on or before August 29, 2016, and that all reply papers in support of the settlement and responses to shareholder objections shall be filed on or before September 12, 2016.

     On August 19, 2016, the Court issued another Order continuing the final fairness hearing in the Derivative Actions, previously scheduled for September 22, 2016, at 1:30 p.m., to October 17, 2016, at 1:30 p.m. The Court also ordered that opening briefs and supporting documents in support of final approval of the settlement shall be filed on or before September 9, 2016, that all objections of Notis Global shareholders to the settlement shall be filed on or before September 23, 2016, and that all reply papers in support of the settlement and responses to shareholder objections shall be filed on or before October 7, 2016.

     On September 16, 2016, solely to avoid the costs, risks, and uncertainties inherent in litigation, the parties entered into a settlement regarding Merritts’ claims in the Merritts Action. The settlement provides, among other things, for the release and dismissal of all asserted claims.

     On September 26, 2016, the Court issued an Order scheduling the final fairness hearing for the settlement in the Merritts Action for October 17, 2016 at 1:30 p.m. The Court also ordered Merritts to file his Motion for Preliminary Approval of Settlement on or before September 23, 2016 and his Motion for Final Approval of Settlement on or before October 3, 2016.  The Court also ordered that all objections of Notis Global shareholders to the settlement of the Merritts Action shall be filed on or before October 7, 2016 and that all reply papers in support of the settlement and responses to shareholder objections shall be filed on or before October 10, 2016.
     The disclosure set forth herein provides notice to potential objectors of the settlement and the foregoing information and notice to potential objectors of the change to the hearing date.

Class Action - Notice of Change of Date for Final Fairness Hearing

     As previously reported in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, on December 1, 2015, Notis Global and the class plaintiffs in Josh Crystal v. Medbox, Inc., et al., Case No. 2:15-CV-00426-BRO (JEMx), pending before the United States District Court for the Central District of California (the “Court”) notified the Court of a settlement. The Court stayed the action pending the Court’s review of the settlement and directed the parties to file a stipulation of settlement. On December 18, 2015, plaintiffs filed the Motion for Preliminary Approval of Class Action Settlement that included the stipulation of settlement. On February 3, 2016, the Court issued an Order granting preliminary approval of the settlement. The settlement provides for notice to be given to the class, a period for opt outs and a final approval hearing. The Court had scheduled the Final Settlement Approval Hearing to be held on May 16, 2016 at 1:30 p.m.

On May 13, 2016, the Court issued an Order continuing the final fairness hearing to August 15, 2016, at 1:30 p.m.

On August 3, 2016, the Court issued another Order continuing the final fairness hearing to September 22, 2016, at 1:30 p.m.

On September 13, 2016, the Court issued another Order continuing the final fairness hearing to October 17, 2016, at 1:30 p.m.

The disclosure set forth herein provides notice to potential objectors of the change to the hearing date.

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Notis Global is a pioneer in the worldwide legal hemp and CBD Oil industry.  Specializing in cultivation, extraction and product development, Notis brings an unparalleled set of skills and executive experience to the burgeoning hemp industry. Through partnerships, Notis is a leading U.S.-based provider of CBD Oil and holds a significant ownership stake in one of the largest hemp farms in the United States.

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