DALLAS, March 22, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- North American Cannabis Holdings, Inc. (USMJ) (“USMJâ€) and Puration Inc. (PURA) (“PURAâ€) today published an update on the progress the two companies are making toward their respective planned dividend distributions. USMJ and PURA are sister companies sharing the same majority shareholder, ACI Conglomerated. In the 4th quarter of 2018, USMJ sold its AmeriCanna Cafe Restaurant business to an independently listed public holding company as part of a strategy to support the restaurant business with a dedicated public equity. The independently listed public holding company is Priority Aviation (PJET). The transaction between USMJ and PJET includes a name change for PJET and a dividend of PJET shares to USMJ shareholders. Similarly, PURA sold its cannabis cultivation subsidiary to Nouveau (NOUV). The PURA and NOUV transaction also includes a dividend of NOUV shares to PURA shareholders. The execution of the dividends is taking longer than anticipated, but the plans have not changed. The update below provides more details on the current status and progress of the two dividend distributions to include additional updates on the overall business.
USMJ and PJET Update and New WCVC
developments
In the 4th quarter of 2018, USMJ spun off
its AmeriCanna Cafe business through the execution of a securities
exchange agreement between USMJ and PJET. USMJ has sold its
AmeriCanna Cafe business in exchange for a convertible purchase
note issued by PJET. Neither USMJ nor PJET are executing a
reverse split in conjunction with this transaction. USMJ and
PJET do plan to promptly convert the $1.5 million note
into a number of common PJET shares sufficient to issue one PJET
common share for every fifty shares of USMJ common shares issued
and outstanding. All of the PJET common shares issued in
conversion of the purchase note are slated for distributed to USMJ
shareholders in a dividend distribution. Nothing has changed
in regard to this plan since the execution of the agreement.
The hurdle that remains in front of the dividend distribution is
bringing PJET current with the OTC Markets reporting
standards. The company has all the reports ready to file
pending OTC Markets being ready to accept the filings. It
appears that in an effort to improve OTC investor protections, that
the OTC has upped its scrutiny of issuers applying to update their
reporting, particularly with issuers that have recently undergone a
significant business change or capital restructuring.
Accordingly, we believe the OTC Markets review is taking longer
than anticipated.
USMJ has made a number of announcements over the past several
months regarding its business developments with its interests in
PJET/AmeriCanna Cafe business and West Coast Venture Group
(WCVC) is the owner and operator of
the $3 million Colorado based Illegal Burger
chain. WCVC has partnered with PJET/AmeriCanna Café in
rolling out an AmeriCanna Cafe pilot featuring an AmeriCanna Cafe
food truck in pop-up venues near a series of recreational marijuana
dispensaries in Colorado. The partnership is going well
and growing and shareholders can look for some exciting
announcements coming soon about new developments in the
relationship with WCVC.
PURA and NOUV and New Developments with KALY
In the 4th quarter of 2018, PURA sold its
cannabis cultivation business to NOUV in exchange for a $1.2
million convertible note with a commitment that the note would
promptly be converted into shares of NOUV and that those converted
shares would be distributed in a stock dividend to the shareholders
of PURA. The plan remains unchanged. Similar to the situation
with USMJ and NOUV, the hurdle that remains in front of the
dividend distribution is bringing NOUV current with the OTC Markets
reporting standards. The company has all the reports ready to
file pending OTC Markets being ready to accept the filings.
It appears that in an effort to improve OTC investor protections,
that the OTC has upped its scrutiny of issuers applying to update
their reporting, particularly with issuers that have recently
undergone a significant business change or capital
restructuring. Accordingly, we believe the OTC Markets review
is taking longer than anticipated.
Since NOUV and PURA executed the cannabis cultivation transaction,
the cannabis cultivation business has been progressing with both
its marijuana cultivation business in Canada and its US, revenue
generating operations in the US. NOUV recently announced
plans to plant 100 acers of Hemp this spring now that hemp farming
is legal in the US under the 2018 Farm Act. NOUV and PURA
have also partnered with Kali-Extracts (KALY) (“KALYâ€) to work together in the development
of cannabis pharmaceutical solutions. Together, the three
companies have entered into an agreement with Generex Biotechnology
(GNBT).
Management of USMJ, PURA, NOUV and PJET are overlapping as the
controlling interest of all four companies is held by a private
company, ACI Conglomerated. Management is confident that
progress with bringing NOUV and PJET current with their OTC Markets
reporting standards is progressing and within reach. Keep
checking back for the latest updates.
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,
[email protected]
(800) 861-1350
Steven Rash
CEO North American Cannabis Holdings, Inc.
[email protected]
+1-800-861-1350