Company Publishes CEO Letter To Shareholders Confirming Puration Dividend and Ongoing Spinoff and Dividend Business Model
DALLAS, TX / ACCESSWIRE / November 16, 2016 / North American Cannabis Holdings, Inc. (USMJ) today released a letter to shareholders from CEO Steven Rash that confirms the Company's commitment to the dividend of stock in Puration, Inc. (PURA) with a shareholder of record date of October 21, 2016. The letter includes the latest update on the process to issue the dividend. The letter also details how the current dividend process is a milestone event in the Company's long-term strategic plan. The letter is included in its entirety below.
Dear Shareholders -
The primary purpose of this letter is to confirm to all shareholders that North American Cannabis Holdings is serious about issuing the Puration dividend. This is not a gimmick or a trick. We didn't forget or put the issuance on a back burner. We are 100% committed to following through on this dividend issuance.
Managing through the process in order to issue the Puration dividend is a top priority for two reasons. First, so that the dividend can be issued in a timely manner. Second, the Puration dividend is a model for North American Cannabis Holdings' strategic plan to pilot and spinoff future cannabis enterprise operations that include future Puration like dividends issued to North American Cannabis Holdings shareholders. You might recall we recently announced a second deal in the works intended to result in a second dividend:
So where are we now in the process to get the dividend issued? On Friday, October 21, 2016 we formally set the Shareholder of Record Date for a dividend of stock in Puration, Inc. (PURA) to be issued to shareholders. The Record Date was appropriately registered as required with regulatory authorities. Shareholders as of close of business on Friday, October 21, 2016 are eligible to receive shares in PURA.
The next step is to set the Dividend Payment Date. We are currently working with regulatory oversight authorities to finalize necessary details to execute the issuance of PURA stock to North American Cannabis Holdings shareholders. What does this mean? We have submitted a prerequisite application to issue the dividend and we are now managing through the follow up process. After submitting the application, it is routine for the applicant to receive a number of questions regarding the subject dividend. The response to the questions typically requires a narrative response and the submission of supporting documentation. It is not unusual for the response to the regulatory authority to generate additional questions from the regulatory authority. The second response similarly requires a narrative response accompanied by supporting documentation. The question and response process can go through multiple iterations to reach completion. We are currently a couple of iterations into this process. We anticipate that this process can reasonably be completed in approximately 30 days from the time of application. We are still less than 30 days since submitting the application.
For even more detail on the process regarding Shareholder of Record Dates, Payment Dates and Ex Dividend Dates, see our website at the following link:
Once the Payment Date is set, North American Cannabis Holdings shareholders that acquired stock on or before the Record date will receive stock in PURA based on the yet to be set Payment Date. Those shareholders eligible to receive stock on the payment date will actually be determined three days after the Payment Date. It takes three days for the stock to 'settle' within the electronic trading system.
Distribution of the stock will be initiated by the Transfer Agent. From the Transfer Agent the stock will disseminated to shareholders' brokers. Shareholders should be contacted by their brokers once the stock is received by the brokers. This is not an electronic process. Physical certificates will be issued and distributed. We will of course issue further updates as the process advances so you know when to be looking for a something from your broker.
PURA Stock Dividend Strategic Milestone
North American Cannabis Holdings business model is to pilot various cannabis sector enterprises and spin successful pilots off into standalone public companies to further develop the pilot projects into fully commercial applications. We are a cannabis business launch pad. Our business didn't happen overnight and we have more work yet to do. We entered the cannabis sector in 2013. Last year, in the summer of 2015, we executed our first spinoff in a transaction where our cannabis extract pilot moved under Puration, Inc. (PURA). We're now working on the dividend of PURA stock to North American Cannabis Holdings Shareholders. We are learning and improving upon the pilot to spinoff to dividend process as we go. We have more spinoffs in the works. This letter includes a link above to the Altnernet spinoff and dividend anticipated next. We anticipate yet a third spinoff to be initiated as part of a very strategic step forward to be announced before the end of this year.
I appreciate the emails and calls we have received about the dividend process. We've tried to be proactive in communicating to shareholders about the process with our previous website posts and press releases, but from the emails and calls, it appears we may have left a gap or two in our previous communications. I do hope this letter has closed those gaps. Keep checking back. We're still within our initial 30-day anticipated time frame to set a Payment Date and doing all we can to keep it within that 30-day time frame. We'd love nothing more than to get the date announced prior to Thanksgiving, but holiday schedules have been known to slow progress from time to time. We're going to do everything we can to get the Payment Date finalized as soon as possible.
North American Cannabis Holdings, Inc.
Review North American Cannabis Holdings recent CEO update to learn more about the Company's strategy going forward and performance to date having recently reported 23% annual revenue growth
To learn more about North American Cannabis Holdings: www.growusmj.com
Follow the Company on Twitter: twitter.com/US_HEMP
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, amongst 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.
SOURCE: North American Cannabis Holdings, Inc.