Exhibit
4.07


 


WARRANT
SETTLEMENT AGREEMENT


 


This Warrant Settlement
Agreement (this “Agreement”), dated June 27, 2018 (the “Effective Date”), is
entered into by and between St. George Investments LLC, a Utah limited liability company (“Investor”),
and Mountain High Acquisitions Corp., a Colorado corporation (“Company”). Investor and Company are sometimes
individually referred to hereinafter as a “Party” and collectively as the “Parties.”
Capitalized terms used herein but not otherwise defined shall have the meaning ascribed thereto in the Warrant (as defined below).


 


A.            
On June 30, 2017, Company issued to Investor that certain Warrant to Purchase Shares of Common Stock (the “Warrant”).


 


B.            
The Warrant was issued pursuant to that certain Securities Agreement dated June 30, 2017 between Company and Investor (the
“Purchase Agreement”).


 


C.            
Upon Company’s request, Investor has agreed to settle the Warrant on the terms and conditions set forth herein.


 


NOW, THEREFORE, in consideration
of the promises set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:


 


1.             
Settlement. Investor agrees to accept the Shares (as defined below) as full payment for and satisfaction of the Warrant.


 


2.             
Warrant Exercise. Together with its execution of this Agreement, Investor has delivered to Company a Notice of Exercise
pursuant to the terms of the Warrant, a copy of which is attached hereto as Exhibit A (the “Notice of
Exercise”). By its execution below, Company acknowledges its receipt of the Notice of Exercise as of the date of
this Agreement. Pursuant to the Notice of Exercise, Company is required, and hereby agrees, to issue to Investor 6,000,000 Delivery
Shares in accordance with and in the manner and within the timeframes prescribed in Section 2.1 of the Warrant (the “Shares”).
For the avoidance of doubt, in order for the Shares to be deemed to have been delivered to Investor, (a) the Shares or certificate(s)
representing the Shares must have been cleared and approved for public resale by the compliance departments of Investor’s
brokerage firm and the clearing firm servicing such brokerage, and (b) the Shares must be held in the name of the clearing firm
servicing Investor’s brokerage firm and must have been deposited into such clearing firm’s account for the benefit
of Investor.


 


3.             
No Additional Exercises. Provided Company delivers the Shares to Investor in accordance with the terms hereof, from
the date hereof until the date on which all of the Shares have been received by Investor, Investor agrees that, other than with
respect to Shares issued pursuant to the Notice of Exercise, it will not exercise all or any portion of the Warrant. Notwithstanding
the foregoing, if Company fails to deliver any Shares as and when required pursuant to Section 2 above, Investor shall thereafter
be free to exercise the Warrant in accordance with the terms thereof, without any restrictions other than as set forth therein.
Nothing herein shall be deemed to alter, amend or modify the Warrant except as expressly provided for herein. Further, Investor
expressly reserves all rights under the Warrant except as provided for herein.


 


4.             
Return of Warrant. Upon Investor’s receipt of the Shares pursuant to Section 2 above, Investor covenants and
agrees to return the original Warrant to Company for cancellation, or, if the original Warrant is not available, upon request,
Investor will execute a lost warrant affidavit in a form acceptable to Investor certifying to Company that the Warrant has been
lost, stolen, or destroyed.


 


5.             
Mutual Release. Upon Investor’s receipt of the Shares: (a) Investor shall release and discharge Company from
all known and unknown charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions,
causes of action, suits, rights, demands, costs, losses, debts, penalties, fees, expenses (including attorneys’ fees and
costs actually incurred), and punitive damages, of any nature whatsoever, known or unknown, which Investor has, or may have had,
against Company, whether or not apparent or yet to be discovered, or which may hereafter develop, for any acts or omissions in
connection with the Warrant; and (b) Company shall release and discharge Investor from all known and unknown charges, complaints,
claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands,
costs, losses, debts, penalties, fees, expenses (including attorneys’ fees and costs actually incurred), and punitive damages,
of any nature whatsoever, known or unknown, which Company has, or may have had, against Investor, whether or not apparent or yet
to be discovered, or which may hereafter develop, for any acts or omissions in connection with the Warrant.


 


6.             
Failure to Comply. Should Company fail to comply with any of the conditions set forth herein, including without
limitation failing to deliver the Shares as and when required hereunder, Investor’s release of claims set forth in Section
5 above and all other waivers given herein shall immediately and automatically be deemed withdrawn, Investor shall have no obligation
to return the original Warrant to Company for cancellation, and Investor shall be entitled to all rights and remedies available
to it at law, in equity or as otherwise set forth in the Warrant, including without limitation continuing to exercise the Warrant
until it has been exercised in full in accordance with its terms.


 


7.             
Representations, Warranties and Agreements. In order to induce Investor to enter into this Agreement, Company,
for itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:


 


7.1.        
Authority. Company has full power and authority to enter into this Agreement and to incur and perform all
obligations and covenants contained herein, all of which have been duly authorized by all proper and necessary action. No consent,
approval, filing or registration with or notice to any governmental authority is required as a condition to the validity of this
Agreement or the performance of any of the obligations of Company hereunder.


 


7.2.        
No Waiver. Any breach which may have occurred under the Warrant has not been, is not hereby, and shall not
be deemed to be waived by Investor, expressly, impliedly, through course of conduct or otherwise except upon full satisfaction
of Company’s obligations under this Agreement. The agreement of Investor to refrain and forbear from exercising any rights
and remedies under the Warrant shall not constitute a waiver of any other rights or remedies of Investor under the Warrant.


 


7.3.        
Accurate Representations. All understandings, representations, warranties and recitals contained or expressed
in this Agreement are true, accurate, complete, and correct in all respects; and no such understanding, representation, warranty,
or recital fails or omits to state or otherwise disclose any material fact or information necessary to prevent such understanding,
representation, warranty, or recital from being misleading. Company acknowledges and agrees that Investor has been induced in part
to enter into this Agreement based upon Investor’s justifiable reliance on the truth, accuracy, and completeness of all understandings,
representations, warranties, and recitals contained in this Agreement. There is no fact known to Company or which should be known
to Company which Company has not disclosed to Investor on or prior to the date hereof which would or could materially and adversely
affect the understandings of Investor expressed in this Agreement or any representation, warranty, or recital contained in this
Agreement.


 


7.4.        
No Defenses. Company has no defenses, affirmative or otherwise,
rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action of any kind or nature whatsoever against
Investor, directly or indirectly, arising out of, based upon, or in any manner connected with, the transactions contemplated hereby,
whether known or unknown, which occurred, existed, was taken, permitted, or begun prior to the execution of this Agreement and
occurred, existed, was taken, permitted or begun in accordance with, pursuant to, or by virtue of any of the terms or conditions
of the Warrant. To the extent any such defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims,
actions or causes of action exist or existed, such defenses, rights, claims, counterclaims, actions and causes of action are hereby
waived, discharged and released. Company hereby acknowledges and agrees that the execution of this Agreement by Investor shall
not constitute an acknowledgment of or admission by Investor of the existence of any claims or of liability for any matter or precedent
upon which any claim or liability may be asserted.


 


7.5.        
Voluntary Agreement. Company
hereby acknowledges that it has freely and voluntarily entered into this Agreement after an adequate opportunity and sufficient
period of time to review, analyze, and discuss (a) all terms and conditions of this Agreement, (b) any and all other documents
executed and delivered in connection with the transactions contemplated by this Agreement, and (c) all factual and legal matters
relevant to this Agreement and/or any and all such other documents, with counsel freely and independently selected by Company (or
had the opportunity to be represented by counsel). Company further acknowledges and agrees that it has actively and with full understanding
participated in the negotiation of this Agreement and all other documents executed and delivered in connection with this Agreement
after consultation and review with its counsel (or had the opportunity to be represented by counsel), that all of the terms and
conditions of this Agreement and the other documents executed and delivered in connection with this Agreement have been negotiated
at arm’s-length, and that this Agreement and all such other documents have been negotiated, prepared, and executed without
fraud, duress, undue influence, or coercion of any kind or nature whatsoever having been exerted by or imposed upon any party by
any other party. No provision of this Agreement or such other documents shall be construed against or interpreted to the disadvantage
of any party by any court or other governmental or judicial authority by reason of such party having or being deemed to have structured,
dictated, or drafted such provision.


 


7.6.        
No Proceedings. There are no proceedings or investigations pending
or threatened before any court or arbitrator or before or by, any governmental, administrative, or judicial authority or agency,
or arbitrator, against Company.


 


7.7.        
No Statutes. There is no statute, regulation, rule, order or
judgment and no provision of any mortgage, indenture, contract or other agreement binding on Company, which would prohibit or cause
a default under or in any way prevent the execution, delivery, performance, compliance or observance of any of the terms and conditions
of this Agreement and/or any of the other documents executed and delivered in connection with this Agreement.


 


7.8.        
Solvent. Company is solvent as of the date of this Agreement,
and none of the terms or provisions of this Agreement shall have the effect of rendering Company insolvent. The terms and provisions
of this Agreement and all other instruments and agreements entered into in connection herewith are being given for full and fair
consideration and exchange of value.


 


8.             
 Miscellaneous.


 


8.1.        
 Further Assurances. At any time or from time to time after the Effective Date, at the request of a Party, and without
further consideration, each of the Parties shall execute and deliver, or shall cause its respective affiliate(s) to execute and
deliver, such other agreements, instruments, certifications or other documents as may be necessary or desirable to effectuate the
transactions and fulfill its obligations under this Agreement.


 


8.2.        
Arbitration. Each party agrees that any dispute arising out of or relating to this Agreement shall be subject to
the Arbitration Provisions (as defined in the Purchase Agreement).


 


8.3.        
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Utah without regard to the principles of conflict of laws. Each Party consents to and expressly agrees that the exclusive venue
for arbitration of any dispute arising out of or relating to this Agreement or the relationship of the parties or their affiliates
shall be in Salt Lake County, Utah. Without modifying the Parties’ obligations to resolve disputes hereunder pursuant to
the Arbitration Provisions, each Party hereto submits to the exclusive jurisdiction of any state or federal court sitting in Salt
Lake County, Utah in any proceeding arising out of or relating to this Agreement and agrees that all Claims (as defined in the
Arbitration Provisions) in respect of the proceeding may only be heard and determined in any such court and hereby expressly submits
to the exclusive personal jurisdiction and venue of such court for the purposes hereof and expressly waives any claim of improper
venue and any claim that such courts are an inconvenient forum. Each Party hereto hereby irrevocably consents to the service of
process of any of the aforementioned courts in any such proceeding by the mailing of copies thereof by registered or certified
mail, postage prepaid, to its address as set forth in the Purchase Agreement, such service to become effective ten (10) days after
such mailing. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.


 


8.4.        
Severability. If any part of this Agreement is construed to be in violation of any law, such part shall be modified
to achieve the objective of the Parties to the fullest extent permitted and the balance of this Agreement shall remain in full
force and effect.


 


8.5.        
 Successors. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors
and assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Investor
hereunder may be assigned by Investor to a third party, including its financing sources, in whole or in part. Company may not assign
this Agreement or any of its obligations herein without the prior written consent of Investor.


 


8.6.        
 Entire Agreement. This Agreement, together with all other documents referred to herein, supersedes all other prior
oral or written agreements between Company, Investor, its affiliates and persons acting on its behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the Parties with
respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither Investor nor
Company makes any representation, warranty, covenant or undertaking with respect to such matters.


 


8.7.        
Amendments; Waiver. This Agreement may be amended, modified, or supplemented only by written agreement of the Parties.
No provision of this Agreement may be waived except in writing signed by the Party against whom such waiver is sought to be enforced.


 


8.8.        
Attorneys’ Fees. In the event of any arbitration or action at law or in equity to enforce or interpret the
terms of this Agreement, the Parties agree that the Party who is awarded the most money (without regard to any fines, penalties,
or charges imposed by any governmental or regulatory authority) shall be deemed the prevailing Party for all purposes and shall
therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such prevailing
Party in connection with the arbitration, litigation and/or dispute without reduction or apportionment based upon the individual
claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s
or a court’s power to award fees and expenses for frivolous or bad faith pleading.


 


8.9.        
Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signing
parties had signed the same document. All counterparts shall be construed together and constitute the same instrument. The exchange
of copies of this Agreement and of signature pages by facsimile transmission or other electronic transmission (including email)
shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement
for all purposes. Signatures of the Parties transmitted by facsimile transmission or other electronic transmission (including email)
shall be deemed to be their original signatures for all purposes.


 


8.10.     
Acknowledgement. By executing this Agreement, each of the Parties evidences
that it carefully read and fully understands all of the provisions of this Agreement.


 


8.11.     
No Reliance. Company acknowledges and agrees that neither Investor nor any of its officers, directors, members, managers,
representatives or agents has made any representations or warranties to Company or any of its agents, representatives, officers,
directors, stockholders, or employees except as expressly set forth in this Agreement and, in making its decision to enter into
the transactions contemplated by this Agreement, Company is not relying on any representation, warranty, covenant or promise of
Investor or its officers, directors, members, managers, agents or representatives other than as set forth in this Agreement.


 


8.12.     
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement.


 


8.13.     
Notices. Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted
under this Agreement to be given to Company or Investor shall be given as set forth in the “Notices” section of the
Warrant.


 


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IN WITNESS WHEREOF, the undersigned have executed
this Agreement to be effective as of the Effective Date.


 





 


 




    	 



    	 



    

EXHIBIT A


 


NOTICE OF EXERCISE