ALTERNATE HEALTH CEO UPDATES SHAREHOLDERS ON SPINOFF PLANS
ALTERNATE HEALTH CEO
SHAREHOLDERS ON SPINOFF
TX -- May 10, 2018 -- InvestorsHub NewsWire -- Alternate Health
Corp., ("Alternate Health") (CSE:AHG)
an international leader in software solutions for the medical
cannabis industry, updated shareholders today on the Company’s
spinoff plans and key milestones for the upcoming
“The Company has been
very active this year adjusting our business for revenue generation
and growth, including developing our potential spinoff plan for
Alternate Health’s non-cannabis assets,” says Dr. Michael Murphy,
Chairman and CEO of Alternate Health. “We are excited about this
plan, but we want to assure our shareholders that we will only act
on this plan when the right conditions are met across the
Management has received
Board approval to explore a spinoff plan for the Company’s
non-cannabis assets, it is estimated to take at least three to four
months to complete this due diligence process. In the meantime,
there are at least four key milestones Alternate Heath plans to
meet before acting, including:
- Laboratory referrals
back above 10,000 samples per month and growing.
- Our payment engine
for non-cannabis transactions has at least 2 contracts with testing
and implementation underway.
- Cannabis payment
engine fully integrated to the CanaPass/StatePass system and
revenue has started.
cannabis sales have started with a good business plan and prospects
for future growth.
Should the above
criteria be met, and final decision made, the Board expects to seek
shareholder approval and that all shareholders would receive their
pro rata share of ownership in both companies, on a 1:1
ratio. Tax implications must also be considered prior to a
final decision being taken.
Alternate Health’s focus
continues to be on maintaining shareholder value,
- Only equity dilution
to be based on any capital raise associated with the Newco
- Part of any newly
raised capital would be used to hire management to oversee and
expand each new primary division in the company.
No decision has been
made on the final division of company assets between the NewCo and
Alternate Health. In particular, Alternate Health is exploring
different options for the Company’s laboratory business. The Lab
could move to the non-cannabis NewCo or stay in Alternate Health.
Another option could see the Lab move to the NewCo and pay a
long-term royalty to Alternate Health.
“We believe the proposed
spinoff of the Company’s non-cannabis assets is the best plan to
maximize the value and revenue potential of the Company’s assets,”
says Dr. Murphy. “The Board will be busy performing our due
diligence and will update shareholders in time.”
The Company also
announces a change to Alternate Health’s Board of Directors.
Kristin Taylor has tendered her resignation as an independent
director to focus on her full-time career obligations. On behalf of
the Board of Directors, Alternate Health’s Chairman and CEO, Dr.
Michael Murphy, would like to thank Kristin Taylor for her support
and service to the Company. The Company is actively looking for an
independent director to fill Ms. Taylor’s seat on the Board, and
will do so in the near future.
OTCQB: AHGIF) Alternate Health has established multiple
arms-length operations within the medical cannabis industry, each
of which drives consumers, data and strategic opportunities to the
company’s other verticals. This sophisticated cross-integration of
the company’s enterprises has positioned Alternate Health as one of
the only cannabis companies that delivers consistent revenue and
intellectual property without growing, manufacturing or
distributing the cannabis plant. Through its software solutions,
data analytics, and patented delivery systems, Alternate Health’s
goal is to be the global authority on scientific and clinical
support for cannabis in regulated markets. Alternate Health is well
positioned to reinvest internal operating cash flow in its platform
over the long term, creating an attractive investment profile for
Alternate Health resides
in the cannabis sector along with companies like GW
Pharmaceuticals, AXIM Biotechnologies Inc., Canopy Growth
Corporation, and Aphria Inc. Alternate Health is differentiated
from other cannabis companies by its focus on ancillary services
for patients, healthcare professionals and regulatory providers
rather than selling a commodity. For more information about
Alternate Health Corp., visit www.alternatehealth.com.
Neither the CSE nor its Regulation Services
Provider (as that term is defined in the policies of the CSE)
accepts responsibility for the adequacy or accuracy of this
release. Statements included in this announcement, including
statements concerning our plans, intentions and expectations, which
are not historical in nature are intended to be, and are hereby
identified as “forward-looking statements”. Forward-looking
statements may be identified by words including “anticipates”,
“believes”, “intends”, “estimates”, “expects” and similar
expressions. The Company cautions readers that forward-looking
statements, including without limitation those relating to the
Company’s future operations, business prospects, financing plans
and spin off plans, are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
indicated in the forward-looking statements.
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