Puration Announces Patented Cannabis Extraction Spinoff and Dividend Plan to Optimize Shareholder Value
(4 months ago)
DALLAS: Puration, Inc. (USOTC: PURA) today announced a spinoff and dividend strategy to optimize shareholder value. Puration is the sole licensee to U.S. Patent No. 9,199,960, entitled "METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUDING THE CANNABIS PLANT."
The license permits Puration to produce cannabis extracts for infusion into recreational, fitness wellness, alternative medicine and beauty products.
Management found the ideal first application of the extraction technology in the introduction of its own cannabis infused beverage. Last year, the company launched EVERx CBD Infused Sports Water which has since become a leading brand name in the CBD infused marketplace and one of the only CBD infused products in the sports nutrition marketplace.
Puration recently announced plans to launch new cannabis infused beverage lines into Canada's legal $8 billion market in addition to announcing plans to open a cannabis extraction facility into California's legal $10 billion market. Puration's extraction capacity is being structured into a new subsidiary in a first step to unlock shareholder value by delineating between the company's patented extraction business and cannabis infused beverage business.
The next step will be to spinoff the cannabis extraction subsidiary in conjunction with a Regulation Crowdfunding transaction to capitalize the new independently listed company. The spinoff plan includes a dividend distribution of stock in the new independently listed company to shareholders of Puration.
Management expects the combination of two stocks, one representing the value of the cannabis infused beverage operation that remains in the parent company, and the other representing the value of patented extraction operation going into the spinoff, will together yield a greater return for shareholders than a single stock representing the integrated value of the two. Look for more updates on the spinoff and dividend plan coming soon.