DALLAS, March 22, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — North American Cannabis Holdings, Inc. (USOTC: USMJ) (“USMJ”) and Puration Inc. (USOTC: PURA) (“PURA”) 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 (USOTC: 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 (USOTC: 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 (OTCQB: 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 (USOTC: KALY) (“KALY”) to work together in the development of cannabis pharmaceutical solutions. Together, the three companies have entered into an agreement with Generex Biotechnology (OTCQB: 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.
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.
CEO North American Cannabis Holdings, Inc.