The PAWS Pet Company, Inc. (OTCQB:PAWS), announced it has
executed an agreement to acquire MESA Pharmacy, Inc. as part of its
new strategy to become a dominant player in the delivery of
compounded pharmaceutical products to consumers.
PALO ALTO, CA, Oct. 29, 2013 /PRNewswire/ - The PAWS Pet
Company, Inc. (OTCQB:PAWS) has executed an agreement to acquire
MESA Pharmacy, Inc. (MESA) from its parent, Pharmacy Development
Corp. in exchange for preferred stock. PAWS will be filing a report
on Form 8-K within the next few days. Previously, the Company had
announced that it and PDC had determined to enter into a joint
venture, however progress on PDC/MESA's audit has been much better
than anticipated and the parties have determined that purchasing
MESA would be better for all of the parties and their respective
shareholders.
MESA focuses on providing custom compounded non-narcotic,
transdermal topical pain medications that are marketed to
industrial health physicians and clinics. MESA has developed a
series of topical ointments, in different strengths, that provide
the pain relief doctors seek.
During the current month, according to MESA, it has received
more than $3,400,000 in orders and
filled more than $1,500,000 in actual
prescriptions. MESA believes that it is on track to exceed
$25,000,000 in revenues during fiscal
year 2014 with much greater revenues a very real possibility.
PDC will be paid a royalty on collection for each prescription
filled by MESA as well as receiving 500,000 shares of PAWS Series D
Convertible Preferred Stock. The parties will begin the process of
transferring MESA's license from PDC to PAWS as soon as possible
and the transaction is intended to close upon the issuance of a new
California pharmacy license or
sooner. PDC has the right to appoint three members to the Board of
Directors as soon as the new license is issued and the audit of
MESA's operations is completed.
Furthermore, the holders of a majority of the Company's Series B
Convertible Preferred Stock shares have agreed to vote to reduce
the maximum conversion rate in order to offset the new Series D
stock, on a fully diluted basis.
Additionally, PAWS intends to spin off its remaining airline
related properties, freeing the Company of much of its debt and
further intends to settle most of its remaining debt in the very
near future.
"We are excited about these developments, for our company and
our shareholders, and we believe with MESA's great team, a great
foundation for future growth is set", said Dan Wiesel CEO of The
PAWS Pet Company. He continued, "With the execution of this
agreement, the way forward for PAWS is clear and we will now focus
on completing the licensing process, domesticating the Company in
Nevada and changing our name to
Praxsyn Corporation."
About The PAWS Pet Company, Inc.
The PAWS Pet Company, Inc. is undergoing a transition from the
pet space to the pharmaceutical space. This exciting transition
strategy has been developed to take advantage of the changes
underway in traditional medical services. PAWS believes that great
opportunities exist in pharmaceuticals and how they are delivered
to the public.
For more information on The PAWS Pet Company go to
www.thepawspetcompany.com
For more information on Pharmacy Development Inc. go to
www.pharmacydevelopment.com
Company Contact: ir@thepawspetcompany.com
Forward-Looking Statements
Certain statements made in this press release are
forward-looking in nature (within the meaning of the Private
Securities Litigation Reform Act of 1995) and, accordingly, are
subject to risks and uncertainties. The actual results may differ
materially from those described or contemplated and consequently,
you should not rely on these forward-looking statements as
predictions of future events. Certain of these risks and
uncertainties are discussed in the reports we filed with the
SEC.
SOURCE The PAWS Pet Company, Inc.