Puration confirmed and provided additional details on plans regarding the company's cannabis cultivation spinoff highlighted in the management performance update published on May 22, 2020.
In an effort to concentrate on its CBD infused products business, PURA spun off its cannabis cultivation business it had been developing to Nouveau (NOUV) in a transaction that included a planned dividend of NOUV stock to PURA shareholders. Brian Shibley, the CEO of PURA continues to serve as the interim CEO of PURA's cannabis cultivation spinoff.
"The cannabis cultivation operation is thriving," the team with the company explains. "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."
"While the cannabis cultivation spinoff is operationally advancing, the plans for harnessing the NOUV public holding company capital structure opportunities to contribute to further advancing the cannabis cultivation spinoff have languished. PURA has devised a strategy to unwind the NOUV deal and simultaneously execute a new spinoff transaction. The new strategy does include a dividend within the spirit of the original transaction with NOUV."
PURA's cannabis cultivation spinoff has been working with Kali-Extracts' (KALY) NCM Biotech subsidiary in a joint effort to develop a proprietary cultivar to advance NCM Biotech's ongoing work to produce various medical treatments from their patented cannabis extraction process. NCM Biotech and PURA's cannabis cultivation spinoff are developing a plan to merge the two operations. The new PURA plan to unwind the NOUV deal and simultaneously execute a new spinoff does currently include an intended divided on the NCM Biotech and cannabis cultivation merged organization.
While plans for the new strategy for PURA's cannabis cultivation spinoff do involve an intended merger with KALY's NCM Biotech subsidiary, it does not include a stock transaction with the KALY public holding company. The intended merger would be realized within a new company. The new strategy does include a dividend from the new company to the PURA shareholders within the spirit of the original transaction with NOUV. The planned new strategy that includes a merger of NCM Biotech and PURA's cannabis cultivation spinoff is designed to benefit both PURA shareholders and KALY shareholders.
For more information:
Pura
14065 Proton Road, Farmers Branch, TX 75244
+1-800-861-1350
purationinc.com