Puration Announces LOI To Spinoff Cannabis Cultivation Business and Issue Stock Dividend To Shareholders
September 21 2018 - 9:28AM
InvestorsHub NewsWire
Dallas, TX -- September 21, 2018 --
InvestorsHub NewsWire -- Puration, Inc. (USOTC:
PURA) (“PURA”) today announced executing a letter of
intent (“LOI”) to spinoff its cannabis cultivation business.
The prospective “spinoff” will be affected by selling the cannabis
cultivation business to a target publicly traded holding
company. The spinoff transaction is scheduled to close
promptly following the end of the fiscal third quarter on September
30tht, 2018.
Under
the terms of the LOI, the target publicly traded holding company
will issue PURA a $1.2 million convertible note in exchange for the
cannabis cultivation company. After a planned
recapitalization of the target company, according to the terms of
the LOI, the $1.2 million note will be converted to common stock.
Then, further to the terms of the LOI, the converted common stock
of the target public company will be issued in a dividend
distribution to the shareholders of PURA. The spinoff
transaction is structured whereby PURA shareholders are to receive
one share of target public company stock for every five shares of
PURA stock that they hold.
The
target public holding company in this transaction is considered a
vehicle for affecting a spinoff of PURA’s cannabis cultivation
business. The current operations in the target public holding
company are not considered strategic to the cannabis cultivation
spinoff. The current assets of the target public company are
expected to be divested at some point in the future and the minimal
liabilities of the target public company are intended to be
eliminated in the planned recapitalization. The target public
company, Nouveau Life Pharmaceuticals, Inc., (USOTC:
NOUV) (“NOUV”) will be renamed after the execution of the
prospective spinoff transaction.
The
prospective spinoff transaction is ultimately structured as a
reverse merger involving comprehensive terms that include a change
of control. Once all terms of the comprehensive transaction
have been completed, the current majority shareholder of PURA, is
slated to also become the majority shareholder of target public
company which will then be an independently traded cannabis
cultivation company. All parties intend to promptly initiate
1.) the recapitalization of the target public company, and 2.) the
corresponding conversion of the $1.2 million note into common stock
of the target public company, as well as 3.) the dividend
distribution of the converted stock to the shareholders of PURA,
following the sale of the cannabis cultivation business to the
target public company. Look for an announcement indicating
the sale has closed after September 30, 2018
Learn
more about Puration at www.purationinc.com
Learn more about the
cultivation business at https://www.purationinc.com/extraction
Disclaimer/Safe
Harbor:
This news release
contains forward-looking statements within the meaning of the
Securities Litigation Reform Act. The statements reflect the
Company's current views with respect to future events that involve
risks and uncertainties. Among others, these risks include the
expectation that any of the companies mentioned herein will achieve
significant sales, the failure to meet schedule or performance
requirements of the companies' contracts, the companies' liquidity
position, the companies' ability to obtain new contracts, the
emergence of competitors with greater financial resources and the
impact of competitive pricing. In the light of these uncertainties,
the forward-looking events referred to in this release might not
occur. These statements have not been evaluated by the Food and
Drug Administration. These products are not intended to diagnose,
treat, cure, or prevent any disease.
Puration, Inc.
Brian Shibley,
info@aciconglomerated.com
(800) 861-1350
Nouveau Life Pharmaceuti... (PK) (USOTC:NOUV)
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