PURA First Step Toward New Cannabis Cultivation Spinoff Deal and Corresponding Dividend Coming Next Week
DALLAS, July 2, 2020 /PRNewswire/ -- Puration, Inc. (USOTC: PURA) today announced the first step of a multi-step deal to merge PURA's cannabis cultivation spinoff with NCM Biotech is anticipated to close by the end of next week. PURA had previously spun-off its cannabis cultivation operation to Nouveau (USOTC: NOUV) and is now unwinding that deal and moving forward with a new deal structured to include resolving the delayed issue of a planned dividend to PURA shareholders. NCM Biotech is a subsidiary of Kali-Extracts (USOTC: KALY) being merged with PURA's cannabis spinoff. The terms of the planned merger transaction between PURA's cannabis cultivation operation and NCM Biotech includes a planned issue of dividends to PURA shareholders.
The overall transaction will take place in several separate steps with the first step anticipated next week. The step anticipated next week is a change of control derived by a management buyout at a public company currently working in the medical cannabis sector. The management team at the public company is expected to simultaneously announce the planned acquisitions of PURA's cannabis cultivation company and KALY's NCM Biotech.
To execute the deal with the new medical cannabis sector public company, PURA will first unwind its spinoff transaction with NOUV. Immediately following the unwind, PURA will exchange the cannabis cultivation operation for common stock in the public medical cannabis sector public company. The common stock is intended to be issued in a dividend distribution. The target dividend ratio is one for one.
The NCM Biotech purchase is also intended to be executed in exchange for common stock from the acquiring public company.
The cannabis cultivation operation is thriving. The operation has recently purchased and relocated to a new property from its former leased property. Texas lawmakers have recently implemented hemp friendly farming regulations and in so doing, universities within the State of Texas have initiated hemp farming research programs. PURA's cannabis cultivation spinoff has initiated a number of joint research applications with Texas universities.
NCM Biotech is focused on medical research and the development of treatments derived from its patented cannabis extraction process. See a recent research report on CBD extracts derived from NCM Biotech's patented extraction process: Journal of Cannabis Research.
For more information on Puration, visit http://www.purationinc.com.
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.
SOURCE Puration Inc.