North American Cannabis Holdings, Inc. (OTC Pink: USMJ) is engaged as a diversified holding company within the cannabis sector. Shares of the cannabis holding company are surging 50% through afternoon trading on Thursday, May 31, 2018. Over the past month, North American Cannabis Holdings, Inc. has seen average daily volume of 38.5 million shares. However, volume of 611.31 million shares or dollar volume of $366,786, has already exchanged hands on the day.
Shares of North American Cannabis Holdings, Inc. are jumping on Thursday, after the company’s joint venture with Puration, Inc. (OTC Pink: PURA) announced a major update. Overall, the joint venture plans to conduct sweeping updates including two spinoffs and two dividend distributions of the spinoff stock. Shareholders of both USMJ and PURA will receive distribution. North American Cannabis Holdings, Inc. will spinoff its AmeriCanna Café restaurant, which will be its own public entity. Post-spinoff, USMJ will be focusing on new ecommerce initiative. Puration, Inc. plans to spinoff its cannabis cultivation business into an independent public entity, so that PURA can work solely on development of the EVERx CBD Infused Sports Water product. Here is the full press release detailing of the major strategic updates:
North American Cannabis Holdings, Inc. Press Release:
DALLAS, May 31, 2018 /PRNewswire/ — North American Cannabis Holdings, Inc. (USOTC: USMJ) and Puration, Inc. (USOTC: PURA) published a shareholder update presentation today on the company’s website. The presentation details a major strategic update that includes two spinoffs and two dividend distributions of spinoff stock, one to the shareholders of USMJ and one to the shareholders of PURA. The strategic update is designed to capitalize on the two company’s successes with EVERx CBD Infused Sports Water and the AmeriCanna Cafe and to build momentum behind new cannabis cultivation and ecommerce businesses. The presentation narrative is included in its entirety below. See the company website for more detail.
North American Cannabis Holdings and Puration Shareholder Update
North American Cannabis Holdings, Inc. (USMJ) entered the cannabis sector in 2013 with an incubator business model. The company experimented with a number of cannabis related business endeavors to include cultivation, extraction, retail, infused consumer products and specific health applications. The extraction operation developed into a spinoff that was sold to Puration, Inc. (PURA) in a transaction that included an issuance of PURA stock in a dividend distribution to the shareholders of USMJ. Today, the controlling interest in both companies is held by ACI Conglomerated (ACI). ACI continues to experimentally enter various cannabis related sectors and where specific endeavors gain traction, to develop those endeavors into business operations with the intention of establishing new operations in public listings that can be independently capitalized for growth. In conjunction with the independent listings, ACI intends to issue stock in the new public listings in additional dividend distributions similar to the PURA dividend issuance to USMJ shareholders. The purpose of this update presentation is to specifically address the strategic spinoff of two operations and corresponding issuance of two dividend distributions.
USMJ Restaurant Spinoff and New Ecommerce Business
USMJ Management has developed a strategy to enter a new line of business well suited to USMJ’s history and at the same time, spinoff USMJ’s AmeriCanna Cafe restaurant operations into a standalone publicly listed company in a transaction to include a dividend issuance of stock from the independently listed restaurant company to the shareholders of USMJ.
ACI has already struck a deal to acquire control of an existing public company already in the cannabis sector. That acquisition is anticipated to be complete within the next 30 days. After the acquisition, USMJ will sell its AmeriCanna Cafe restaurant operations to the newly acquired company in exchange for stock in the newly acquired company, a portion of which will be issued to the shareholders of USMJ.
USMJ’s primary business operation moving forward will be ecommerce. The company has already begun construction on an ecommerce solution to establish USMJ as the premier source of cannabis sector consumer products. At the same time, the company has also started to develop distribution agreements with manufactures of cannabis sector consumer products. USMJ is a well-known name in the cannabis sector with a high traffic website. The company also brings retail and wholesale experience to its new ecommerce operations which will feature leading CBD infused edibles and beverages in addition to a host of other products. The vision for the company is to become the Amazon of cannabis.
PURA Spinoff and Expanded Beverage Industry Operation
Last year, PURA introduced EVERx CBD Infused Sports Water as an evolution of the company’s cannabis extraction business. EVERx has since become a recognized brand in sports nutrition market place. Distribution is growing. PURA has recently designed a THC infused beverage named THCSavor expected to be introduced in Canada later this year. In a strategy to extend the company’s extraction business upstream into cultivation, PURA acquired a grow operation last year and recently acquired an additional cultivation business in Canada.
PURA management now plans to spinoff its cultivation business into a standalone, independently listed company and concentrate PURA’s ongoing operations on expanding its cannabis infused beverage business. The transaction to structure the cultivation business into a standalone independently listed public company will include a share exchange between PURA and the independently listed public company where shares of the independently listed public company will be issued to the shareholders of PURA in a dividend distribution. An independently listed public company for the planned spinoff of PURA’s cultivation operations has not yet been specifically identified, but efforts are underway to lockup a deal soon.
Behind the spinoffs and dividends are the essential marketing and operational developments to build successful ecommerce, restaurant, beverage and cultivation businesses. Shareholders can expect a number of exciting upcoming announcements as management unfolds the marketing and operational details behind the updated business plans.
For more information on North American Cannabis Holdings and Puration, visit http://www.aciconglomerated.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.