Puration has announced the first step of a multi-step deal to merge PURA's cannabis cultivation spinoff with NCM Biotech, which is anticipated to close by the end of next week. PURA had previously spun-off its cannabis cultivation operation to Nouveau 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 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 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."
For more information:
Pura
14065 Proton Road, Farmers Branch, TX 75244
+1-800-861-1350
purationinc.com