Dallas, TX – August 26, 2016
Next week, North American Cannabis Holdings, (USMJ) plans to announce a dividend date – that date on which all USMJ shareholders of record will receive stock in Puration, Inc. (PURA). The issuance of PURA stock to USMJ shareholders is taking place in conjunction with PURA’s acquisition of an operating asset from USMJ. The asset was acquired last year and is the foundation of PURA’s cannabis extraction business. The dividend of PURA stock to USMJ is good for both companies. Here are a few highlights:
1. It increases the value of USMJ stock ownership (as it should since PURA’s operation came from USMJ’s hard work and investment)
2. It broadens the shareholder base of PURA (PURA has a very small shareholder base today and needs a broader foundation for the PPS to reflect retail investor valuation)
3. The PURA dividend is a first example of USMJ’s long-term plan to develop and spinoff cannabis enterprises.
4. USMJ is incentivized to continue being a customer of PURA using PURA extracts in its Restaurants and Products.
5. With the planned addition of PURA’s investment arm, PURA stock appreciation potential is improved in turn improving the value to USMJ shareholders.
PURA PPS Value To Reflect Retail Market Valuation
The benefits to both companies goes on beyond these highlights. Of particular interest to PURA shareholders should be the broadening shareholder base. PURA has a small number of shareholders and prior to about a month ago, the historical trading volume was negligible. It is our belief that the trading volume over the last month primarily reflects the distribution of stock positions, both long and short, amongst market makers in preparation of a building retail market. The incoming USMJ shareholders can help jump start retail market awareness.
Of particular interest to USMJ shareholders should be PURA’s planned investment arm. This investment arm will not only help accelerate revenue growth but also improve the balance sheet with the addition of equity holdings from other cannabis companies. The PURA investment arm stands to enhance the value of USMJ shareholders’ PURA holdings from the day the dividend is set to the day the PURA stock is received to the day the PURA stock qualifies for exemption from registration.
The USMJ dividend of PURA is good for both companies. For PURA, we anticipate the dividend to raise retail market awareness about PURA. USMJ shareholders will benefit from the added value of PURA stock. PURA has a motivated client and USMJ has a feather in its cap to prove out its cannabis enterprise launch pad business model.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, among other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
Brian Shibley, CEO