North American Cannabis Holdings (USOTC: USMJ) ("USMJ") today announced the company has filed its annual report for the fiscal year ended June 30th, 2018. The company reported 15% revenue growth with $858,000 in sales compared to $742,000 in sales for the year ended June 30, 2017. Notably, the year-end net income all but reached break-even with the company only reporting a $5,300 loss compared to a reported $334,000 loss for the year ended June 30, 2017.
USMJ has recently announced restructuring plans to leverage the company's notable brand name in the cannabis sector to launch a comprehensive cannabis focused ecommerce site. Construction is underway, and the ecommerce capability is expected to be on exhibit soon when USMJ pre-launches its ecommerce site to demonstrate its technical functionality selling EVERx CBD Sports Water produced by USMJ's sister company, Puration, Inc. (USOTC: PURA).
USMJ has also recently announced a letter of intent (LOI) to spin-off its cannabis restaurant business as part of its overall strategy to focus on the cannabis sector ecommerce business. The LOI is structured to affect a spinoff by selling its cannabis restaurant business to an independently traded public company in a transaction that includes a dividend distribution of shares in the independently traded company to the shareholders of USMJ.
The pending USMJ spinoff transaction is structured similarly to the transaction recently announced by sister company Puration, Inc. with and Nouveau Life Pharmaceuticals, Inc. (USOTC: NOUV) ("NOUV"). USMJ has yet to disclose the name of target company for the spinoff, but the name is anticipated to be released soon.
The USMJ spinoff transaction LOI details the intended sale of USMJ's cannabis theme restaurant subsidiary to the yet to be disclosed public company in exchange for a security issued by the target company that will be converted into common shares of the target subsidiary and distributed to the shareholders of USMJ in a stock dividend distribution. The planned dividend distribution ratio is structured for every USMJ shareholder to receive one share of target company stock for every fifty shares they own of USMJ. The dividend distribution plan is not contingent on a recapitalization of either USMJ or the target company. In other words, neither USMJ nor the target company intend to reverse of forward split the stock of the respective company. In further clarification of the planned spinoff transaction, USMJ shareholders keep all the stock they own and are issued new shares in the target company.
Learn more about the company's overall business strategy and history at http://www.growusmj.com.
Disclaimer/Safe Harbor:
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.
Contact:
Steven Rash
CEO North American Cannabis Holdings, Inc.
[email protected]
+1-800-861-1350
SOURCE North American Cannabis Holdings
