PURA Management Issues Update On $1.2 Million Stock Dividend From $10 Million Hemp Cultivation Operation
Dallas, Texas – July 9, 2019 – Puration, Inc. (USOTC: PURA) (”PURA”) and Nouveau (USOTC: NOUV) (“NOUV”) management today published an online update on NOUV’s hemp cultivation operation established to generate $10 million in annual revenue and issue a $1.2 million stock dividend to PURA shareholders. PURA on its own has targeted $4 million in revenue from the sales of a variety of cannabis infused beverages in addition to generating additional shareholder value from the NOUV stock dividend. The update published today provides the latest updates on PURA’s strategic overview presentation published on May 30th, 2019. The narrative of the presentation is included in its entirety below and on the company’s website.
PURA and NOUV Management Update
PURA and NOUV today published the latest progress toward the acceleration of the NOUV stock dividend to be issued to PURA shareholders in conjunction with PURA’s cannabis cultivation operation.
In October last year, PURA spun off its cannabis cultivation business to NOUV in exchange for a $1.2 million convertible note issued by NOUV to PURA. The spinoff deal included a commitment that the note would be converted to common shares of NOUV and that those converted shares would be distributed in a stock dividend to the shareholders of PURA. The prerequisites to issuing the dividend were for NOUV to bring its delinquent financial disclosures current and then execute a 1: 400 reverse spilt to support a 1 for 5 dividend distribution of NOUV common stock to PURA shareholders. The delinquent NOUV financial statements were updated and published yesterday, July 8th, 2019.
Management speculates that scrutiny on penny stocks market-wide has resulted in increased bureaucracy that has in turn resulted in a backlog of disclosure procedures through historically customary channels. Accordingly, NOUV and PURA have devised a plan to work through the prevailing penny market environment.
NOUV has launched its own disclosure site at www.NOUV-INFO.com. The site has been designed for NOUV to be able to publish its own financial statements making them easily accessible to the public without otherwise making shareholders suffer the current bureaucratic delays resulting from what we speculate as increased scrutiny on penny stocks market-wide. The www.NOUV-INFO.com site currently has all NOUV’s historical disclosures in addition to relative market and capital structure information, news and management information, and an NOUV stock quotation. As mentioned above, the delinquent filings have now been updated an publish.
To further work around what has turned out to be the protracted time required to execute a NOUV reverse stock split, NOUV and PURA have alternatively initiated the declaration of a preferred convertible NOUV stock that is intended for immediate distribution to NOUV shareholders. The preferred stock is to be exchanged for the $1.2 million note. Specifically, the plan is for there to be 120 million preferred shares at a value of $0.01 each totaling the $1.2 million. The preferred shares will bear convertible rights to be exchanged for common stock. Once declared and established, NOUV plans to promptly issue the preferred shares to PURA shareholders in a ratio of 1 NOUV preferred share for every 5 PURA shares held.
NOUV $10 Million Hemp Cultivation Revenue Target
The NOUV operations are making great strides. The company has existing conventional nursery operations and transitional cannabis cultivation operations. In addition to the existing conventional nursery operations, NOUV has 100 acres set aside for commercial hemp cultivation. Market estimates anticipate hemp cultivation for CBD extraction to generate over $100,000 per acre. Accordingly, NOUV is targeting $10 million in annual revenue to be generated from the commercial hemp cultivation.
Texas Hemp Rush
The upcoming dividend issuance is more timely than ever now with the recent legalization of hemp farming in Texas pursuant to the Federal legalization of farming under the 2018 Farm Act. Similar to Village Farms in West Texas, a major tomato farming outfit the produces for H-E-B, Tom Albertsons and Walmart, NOUV is expanding its conventional Texas based nursery operation into a major hemp farming operation. PURA shareholders are set to profit from the Texas Hemp Rush as NOUV issues common stock to PURA shareholders in the upcoming dividend issuance.
PURA Speculative Buy Recommendation and $0.25 PPS Target w/Potential to $0.35
Goldman Small Cap Research recently released a new research report recommending PURA as a Speculative BUY with a $0.25 PPS Target. Goldman Small Cap Research further reports that the shares of PURA “have the potential to reach the $0.35 mark.” The report highlights PURA’s growing EVERx CBD Sports Water sales and the coming introduction of new beverages as well as the potential for the company to exceed its 2019 sales targets through the pending doubling of its production capacity and through planned acquisitions. The report further details recent updates intended to accelerate the issue of Nouveau (USOTC: NOUV) stock to PURA shareholders in a dividend distribution. Notably, the report points to the capacity and quality improvements enabled by the addition of a new team member with exceptional beverage industry professional experience.
See the NOUV alternative disclosure website at www.NOUV-INFO.com
See the NOUV Research Analyst Report and Independent Fairness Opinion, at www.NOUV-INFO.com/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.